Polygon DeFi Projects

DeFi Projects on Polygon: Exploring the Best of the Polygon Ecosystem

A deep dive into the vibrant Polygon DeFi ecosystem! Many projects may be familiar, but some are hidden gems just waiting to be discovered.


TL;DR

In the fast-paced world of decentralized finance (DeFi) on Polygon, innovative platforms such as Quickswap and Uniswap continue to flourish. Quickswap, the "OG" DEX of Polygon, leads in terms of total value locked (TVL), offering a range of DeFi actions and a popular weekly Twitter space. Meanwhile, Uniswap, the leading DEX on Polygon in terms of trading volume, continues to innovate with new products and features. Trading platforms, Keom Protocol and Gains Network, further highlight the rapid evolution of DeFi on Polygon with fully on-chain leveraged trading and a wide variety of tradable assets. Reliable lending & borrowing platforms like Aave and Compound demonstrate the strength of Polygon's DeFi ecosystem, holding top rankings in terms of TVL. The article also details the secure and efficient cross-chain bridges, Stargate Finance and Polygon PoS Bridge, facilitating seamless transactions between Ethereum and Polygon networks. The expansive and dynamic ecosystem of DeFi on Polygon indicates a promising future for crypto enthusiasts in this scalable Layer 2 ecosystem.

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Introduction


In the rapidly evolving landscape of DeFi, innovative applications continue to shine on Polygon. Polygon makes transacting on decentralized applications seamless, with its scalable and efficient Layer 2 ecosystem. In this article, we will explore the world of DeFi on Polygon and its most popular applications. Many of the most popular DeFi platforms in crypto are on Polygon, but many others are waiting to be discovered and receive the recognition they deserve. Whether you're a seasoned DeFi enthusiast or just dipping your toes into the decentralized finance waters, this article will serve as your comprehensive guide to understanding Polygon's role in the DeFi space.

Decentralized Exchanges

Quickswap

Quickswap

Quickswap is what you would call the “OG” DEX of Polygon. The QuickSwap DEX lets users perform their favorite DeFi actions such as swapping, LPing, staking, and farming to earn rewards. QuickSwap also comes built with other useful features that set it apart from competitors, including QuickPerps, a Gamma V3 integration, dTWAP/limit orders, and an on-site Gaming Hub built by VersaGames.

The DEX is currently live on Polygon PoS, Polygon zkEVM and Dogechain (A custom chain built using Polygon Supernets). Quickswap is currently the leading DEX on Polygon in terms of TVL with $90M+ on the PoS chain and $10M+ on the zkEVM chain. It is also in the top 3 in terms of trading volume on both the PoS and zkEVM chain.

Not only does Quickswap have impressive numbers across the board, but the team is also extremely active within the community. Each Friday, the All Roads Lead To Polygon Twitter spaces are hosted by the Quickswap team which have blown up in popularity. In fact, the space has been rated the #1 crypto podcast by the Metaverse Post and others.

Uniswap

Uniswap

Uniswap is the most used DEX in the Ethereum ecosystem. In December of 2021, a proposal was approved by Uniswap governance to deploy on the Polygon PoS chain. Since then, Uniswap has had impressive growth and has become the leading DEX on Polygon in terms of trading volume.

Uniswap is more than just your average DEX. The team at Uniswap Labs is constantly shipping new products and features to improve user experience. They recently released their own mobile crypto wallet which has an amazing UI/UX. They’ve also integrated an aggregator NFT marketplace directly within their dApp, where users can find the best prices while shopping NFTs.

Uniswap may have been “late to the party” when deploying on Polygon, but they’ve certainly become one of Polygon’s go-to places to swap tokens.

Trading

Keom

Keom Protocol

Keom (Previously 0vix) aims to create an AI-powered suite of trading products on Polygon. Keom has recently introduced the first fully on-chain leveraged trading protocol on Polygon zkEVM, Keom Margin. Keom margin automates lending market operations to allow users to open up to 5x leveraged positions in a single click.

What are the advantages over Perpetual Exchanges?

Competitive Fees: Keom Margin offers significantly lower fees compared to perpetual exchanges, where funding rates can be as high as 40-60% annually.

Softer Liquidations: In Keom Margin, if your liabilities grow too large relative to your collateral, your position will be adjusted without necessarily being forcibly closed. This feature helps traders manage risk more effectively and avoid sudden liquidations.

Fully On-Chain: Keom Margin operates entirely on-chain, without relying on synthetic assets. This enhances transparency and security in leveraged trading.

Cross-Collateralized Leveraged Trading: Keom Margin plans to introduce cross-collateralization for leveraged trading in the near future, further expanding trading options and flexibility for users.

Gains

Gains Network

GTrade, built by Gains Network, is a liquidity-efficient, powerful, and user-friendly decentralized leveraged trading platform. It was first launched exclusively on Polygon in early 2022 and has since become one of the most used trading platforms in all of Web3.

GTrade allows users to trade three different types of assets including crypto, forex and commodities. The platform offers wide leverage choices, guaranteed execution and 1-click orders.

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Lending & Borrowing

aave

Aave

You can’t talk about DeFi without mentioning Aave. Although not exclusively on Polygon, Aave plays a big role in the Polygon DeFi ecosystem. Aave is a protocol that lets people lend and borrow cryptocurrencies, offering automated crypto loans. Users can deposit cryptocurrency as collateral and borrow other cryptocurrencies, up to a certain percentage of the collateral value.

Aave is currently the #1 DeFi platform on Polygon PoS in terms of TVL. At the time of writing, Aave has $250M+ total value locked. The Polygon Network has the second highest amount of TVL from Aave compared to all blockchains, only behind Ethereum.

Compound

Compound

With a TVL of nearly $40M on Polygon, Compound is another borrowing and lending favorite in the Polygon ecosystem. Compound allows users to deposit cryptocurrency into lending pools for access by borrowers. Lenders then earn interest on the assets they deposit. Once a deposit is made, Compound awards a new cryptocurrency called a cToken (which represents the deposit) to the lender. Examples of cTokens include cETH, cBAT and cDAI.

Similar to Aave, Compound on Polygon has the second highest amount of TVL compared to all blockchains it is currently deployed on. Ethereum is once again the leader with over $600M TVL today.

Bridges

Stargate

Stargate Finance

Stargate, a cross-chain bridge, is currently the #1 bridge in terms of volume on Polygon. The Stargate Bridge is averaging over $10M in volume per day and has over $30M TVL on Polygon PoS. Stargate is also often one of the most used dApps throughout the entire Polygon ecosystem on a daily basis.

Not only is this bridge popular on Polygon, but also on many other blockchains as well. A lot of this has to do with hints at an upcoming airdrop, but regardless the bridging experience is frictionless and fast.

Polygon Pos Bridge

Polygon PoS Bridge

The Polygon Bridge is a trustless cross-chain transaction bridge between the Ethereum and Polygon networks. Ethereum users can leverage the Polygon Bridge to transfer their ERC tokens and NFT assets to the Polygon network via smart contracts. Although the bridging process may be longer than 3rd party bridges, you can have peace of mind when using the Polygon PoS Bridge to be secure and reliable.

The PoS bridge is currently the second most used bridge on Polygon in terms of both users and volume. If you’re looking for a secure way to move assets between Ethereum and Polygon, this is the go-to trusted bridge.

Conclusion


In conclusion, the world of DeFi on Polygon is a vibrant and rapidly evolving ecosystem, with a wide range of innovative applications and platforms to explore. From the pioneering Quickswap DEX to the powerhouse Uniswap, and the cutting-edge trading solutions offered by Keom Protocol and Gains Network, Polygon's DeFi landscape has something for every crypto enthusiast. And when it comes to borrowing and lending, Aave and Compound stand tall as trusted pillars of the ecosystem. Additionally, the seamless bridges provided by Stargate and the Polygon PoS Bridge ensure that assets can flow freely between Ethereum and Polygon, adding to the convenience and accessibility of this dynamic ecosystem.

As Polygon continues to grow and innovate, it's an exciting time to be part of the DeFi revolution on this scalable and efficient Layer 2 ecosystem. Whether you're a seasoned DeFi veteran or just getting started, Polygon offers a world of opportunities waiting to be explored.

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Disclaimer: Nothing on this site should be construed as a financial investment recommendation. It’s important to understand that investing is a high-risk activity. Investments expose money to potential loss.

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