DeFi Season on Polygon zkEVM

Introduction

In the world of DeFi and Web3, Polygon stands out as one of the most used blockchains with its low cost and fast transactions. Now, Polygon is set to reveal a series of significant announcements that will bring DeFi on the Polygon zkEVM chain to the next level. In this article, we dive into the world of Polygon DeFi, exploring its key features, recent advancements, and the highly anticipated dApp launches announcements. Let's take a look at "DeFi Unleashed" on Polygon.

Polygon zkEVM Stages

After successfully launching Polygon zkEVM in March 2023, the network is now entering the second stage of its Mainnet Beta. The focus now shifts to dApp growth and onchain activity activation, with gradual rollouts of new dApps expected over the next two months. During this phase, the Polygon zkEVM client will undergo upgrades to increase throughput, marking the transition from testing to operational readiness.

The third and final stage in March promises a major upgrade removing all limitations on throughput, accompanied by the introduction of various campaigns, signaling the full activation of Polygon zkEVM. In essence, the upcoming months will "open the floodgates" for Polygon zkEVM's highly anticipated season.

zkBuilder Grants Program

In preparation for the upcoming phase of growth on Polygon zkEVM in March, a new initiative called the zkBuilder Decentralized Grants Program has been introduced. This program is specifically designed to empower and support DeFi builders on Polygon zkEVM by providing funding and resources.

As part of the broader ecosystem support offered through Polygon Village, this grants program aims to equip developers with the tools they need to thrive within the evolving landscape of Polygon zkEVM.

Grant Selection Criteria

The zkBuilder Decentralized Grants Program has established two major categories for targeted protocols:

Multichain deployments and new protocols/primitives, both focusing on creating unique products native to Polygon zkEVM. For multi-chain projects, the emphasis is on differentiating the deployment on Polygon zkEVM through specific implementations, product integrations, and cross-chain bandwidth balancing. On the other hand, native protocols need to highlight differentiation, legacy product-market fit, and valuable integrations.

The grant process is divided into pre- and post-grant stages. The pre-grant process involves project onboarding, where applicants fill out an intake form and undergo KYC processes. The review time for applications varies, and applicants are encouraged to continue working on their projects during this period. The post-grant engagement includes protocol and mechanism onboarding, pipeline and integration planning, and community engagement. The zkBuilder Decentralized Grants Council actively collaborates with accepted projects, providing feedback, guidance, and support to maximize success on Polygon zkEVM.

Sample interactions during post-grant engagement include seeking feedback on risk management frameworks, evaluating the competitiveness of new models, and discussing innovative liquidity marketplace primitives. The program also emphasizes pipeline and integration planning, fostering connections between builders to enhance the overall ecosystem. Working with experienced DeFi teams ensures a deep understanding of the products and facilitates meaningful conversations based on the strength of product potential, contributing to a robust and interconnected Polygon zkEVM ecosystem.

dApps on Polygon zkEVM

Hop Protocol

HopProtocol has launched HOP and ETH bridges on Polygon zkEVM, streamlining fund transfers across the entire Polygon ecosystem with speed and cost-efficiency.

The trustless process eliminates waiting times and high fees. AMM incentives on the ETH bridge are live, providing users an opportunity to stake and participate in DeFi. This marks one of the final chains supported by Hop V1 before the release of Hop V2, contributing to the dynamic growth of Polygon zkEVM.

Oku Trade

Uniswap v3 is coming to Polygon zkEVM, becoming accessible on the Oku Trade platform. Oku, recognized as the best DEX interface powered by Uniswap v3, offers a feature-full platform including TradingView charts, Limit Orders, Live Analytics, and more.

The integration of Polygon zkEVM into the Oku Trade platform is expected in the coming weeks, providing users access to Uniswap v3 pools, tokens, and positions.

Gravita Protocol

On January 11, Gravita Protocol announced they have launched on Polygon zkEVM with full support for WETH, enabling users to borrow GRAI at 0% APR.

Specializing in loans against productive and ETH-centric collateral, Gravita Protocol has reduced parameters by a factor of 10 on Mainnet. Notable changes include a minimum position size of 200 GRAI (down from 2000) and a liquidation reserve of 20 GRAI (from 200). The dApp is live here.

Zero

ZERO, set to launch as the Hub of Liquidity on Polygon zkEVM very soon, brings unique features and innovations to DeFi. The v2 oTokenomics of $oZERO, the emissions token, simplify the user experience by eliminating complex ve(3,3) tasks like locking, voting, or claiming rewards. Holding $oZERO allows users to effortlessly earn yield.

One of ZERO's standout features is the Uni V3 trading engine, utilizing Uni V3 Concentrated Liquidity to maximize fees. These fees are directed back to voters, creating a powerful foundation for the platform's features and infrastructure.

Having received a Polygon zkEVM grant, ZERO's initiatives include Bluechip Liquidity Incentives and a Protocols Incentives Match Program. The project is backed by prominent names in the crypto space, and its imminent launch will bring an explosion of DeFi on Polygon zkEVM.

Conclusion

Many more announcements and dApps will be launching on Polygon zkEVM over the next couple months. The DeFi landscape on Polygon zkEVM is gearing up for an exciting period this quarter and is set to witness significant growth and innovation. Stay tuned for an exhilarating ride through the unfolding of DeFi season on Polygon zkEVM Mainnet Beta.