Polygon Monthly Report - January 2024

Introduction

The month of January was full of exciting news and growth throughout the Polygon ecosystem. Many of Polygon’s scaling solutions have grown in adoption and many exciting partnerships were announced. In this article, we’ll discuss the latest news and analytics that you don’t want to miss. Let’s dive in!

Biggest News of the Month

Introducing The AggLayer

Polygon Labs has announced the AggLayer V1 set to launch on Mainnet in February 2024. The AggLayer combines the strengths of monolithic and modular architectures, aggregating ZK-secured Layer 1 and Layer 2 chains to create a unified Web3 network. The protocol utilizes ZK proofs for near-instant, atomic cross-chain transactions, ensuring a seamless and secure experience for users.

AggLayer v1 serves as a unified bridge and proof aggregator for participating chains. It is the first step towards a more advanced AggLayer v2, expected later in the year, which will support asynchronous cross-chain transactions. Developers can connect any Layer 1 or Layer 2 chain to AggLayer, promising a unified environment for dApps and allowing end-users to execute cross-chain atomic transactions in less than one second.

In the upcoming weeks, Polygon Labs plans to delve into key AggLayer components such as proof aggregation, optimistic confirmations, and atomic cross-chain transactions. Additionally, "Aggregation Day" in February will provide further insights into the transformative impact of AggLayer on the blockchain landscape, marking an exciting advancement in blockchain technology and the future of scaling.

More Exciting News

DeFi Unleashed

Polygon Labs has introduced DeFi Unleashed, a campaign focused on expanding the DeFi ecosystem on Polygon zkEVM. Starting with 19 zkEVM dApps, users can explore and complete tasks with up to $50K in rewards powered by Layer 3.

Immutable zkEVM Mainnet

The Immutable zkEVM Mainnet Early Access has been launched, ushering in the future of gaming in collaboration with Polygon. This ecosystem empowers games by providing massive scalability, smart contract compatibility, and gas-free interactions for gamers, all while ensuring Ethereum-backed security.

The Immutable zkEVM offers a platform with zkEVM technology, making it gas-free for gamers, enhancing gameplay mechanics, ensuring seamless interoperability, and providing a swift path to market. Currently in early access, only select game studios and partners can deploy custom smart contracts at launch.

Hypr Network

Hypr Network is utilizing the Polygon Chain Development Kit (CDK) to harness the power of zero-knowledge Ethereum Layer 2 for building scalable gaming infrastructure. Hypr aims to create fast and cost-effective gaming-focused chains, incorporating Celestia's data availability layer.

The project plans to contribute to the Polygon CDK open-source stack by developing a multi-backend data availability service and expanding the precompiled contract library. Hypr also intends to introduce zero knowledge-based gaming SDKs and work on a cross-chain oracle for syncing data between Layer 1 and Layer 2.

Libre

Libre, a new alternative investments infrastructure using Polygon CDK, aims to enable global regulated institutions to issue onchain tokenized assets. Developed by WebN Group and Laser Digital, Libre focuses on legal and regulatory-compliant issuance and lifecycle management of alternative investments. Brevan Howard and Hamilton Lane are among the first strategic partners.

Libre plans to go live in Q1 2024, simplifying workflows for asset managers and wealth advisors. Tokenization aims to increase access to alternative investments, potentially contributing $400 billion in annual revenue.

Wirex

Wirex has announced they are opening early access to WPay, their revolutionary decentralised payment network, built using Polygon CDK. WPay allows you to use your crypto as easily as fiat and is accepted by over 50 million merchants in 200+ countries.

Here is how to get started:

1. Sign up for WPay ➡️ https://wpaychain.com
2. Set up your Spending Account Abstraction.
3. Enjoy full control and custom security.
4. Experience seamless fiat transactions.

OEV Network

API3 has introduced Oracle Extractable Value (OEV), proposing to capture and return leaked value to DeFi protocols. The OEV Network, powered by Polygon CDK, is introduced as a ZK-rollup to capture OEV from dApps using API3 data feeds across all chains. It employs an on-chain auction model, providing security, accessibility, transparency, and accountability.

The first iteration will be on Ethereum mainnet using ETH as the gas token, evolving over time to meet platform needs. OEV Network's collaboration with Gateway FM and the Sepolia testnet is already underway, demonstrating the commitment to addressing challenges in the DeFi space.

Fox x Polygon

Fox Corporation has launched Verify, an open-source protocol built on Polygon PoS to address the authenticity of registered media in the face of the rise of AI-generated content. Verify allows publishers to register and cryptographically sign content on the blockchain, enabling consumers to verify the origin of trusted content using the Verify Tool. Originally launched in closed beta, Verify has now been open-sourced, allowing public contributions.

Built on Polygon PoS for fast and affordable transactions, Verify establishes a bridge between media companies and AI platforms, offering commercial opportunities for content owners through smart contracts. This solution enhances consumer trust and provides media publishers with more control over their interactions with AI platforms.

Dirac Finance NFTs

Dirac Finance, an institutional-grade decentralized Options Vault (DOV) on Polygon zkEVM, has announced the launch of their Paul Dirac Genesis NFT Collection. The 350 piece NFT collection is designed to identify the first users of Dirac Finance Vaults and provide eligibility for the $DIRAC airdrop, discounts on the private token sale and more.

The collection has three tiers to choose from, Protons, Electrons and Positrons. Here is a utility breakdown of each:

Protons: 200 Total

• $100 worth of $DIRAC
• Discount on Private sale
• Boost the rewards from 85% to 90%
• Double your Airdrop points
• Early access to CRLI strategy vault
• Exclusive access to the new vaults and trading strategies of Dirac Finance

Electrons: 100 Total

• $200 worth of $DIRAC
• Discount on Private sale (10%)
• Boost the rewards from 85% to 95%
• Double your Airdrop points
• Early access to CRLI strategy vault
• Exclusive access to the new vaults and trading strategies of Dirac Finance

Positrons: 50 Total

• $400 worth of $DIRAC
• Discount on Private sale (15%)
• Boost the rewards from 85% to 100%
• Double your Airdrop points
• Early access to CRLI strategy vault
• Exclusive access to the new vaults and trading strategies of Dirac Finance
  

The collection is minting out fast, so click here to mint to become eligible for all of these juicy rewards.

Ride The Bus

A new Polygon based game is set to launch an NFT collection of 8,888 buses on February 23rd. Ride The Bus is a strategic game where each level unlocks new challenges and rewards, all on Polygon. The goal is to purchase a bus ticket and choose the right path for each round. Each level is one route harder than the last and Chainlink VRF ensures a unique and unpredictable gaming experience.

For example, at Level 1 you have a 50% chance of survival with 2 paths to choose from. But by Level 20, it drops to just under 5%. How long you ride is up to you. If you survive, you can level up for the next challenge or cash out. Cash outs split a 50% share of level’s locked rewards. 10% goes to the treasury to reward the bus owners who stake their bus into the protocol and 5% goes to further development of the protocol.

For future updates, follow Ride The Bus on X.

Keom Isolated Markets

Keom Isolated Markets are now live on Manta Pacific, featuring $STONE & $USDM. Currently, around $300K has been supplied and Keom has stated that alpha on rewards will be shared shortly.

You can start lending and borrowing on Keom now here.

Powerloom Data Node Sale

Powerloom, in partnership with Polygon Labs, has introduced the first-ever infrastructure NFT mint on Polygon, launching over 10,000 Data Nodes. This initiative aims to democratize data accessibility in the web3 space. Participants can acquire Powerloom Snapshotter Lite node slots through a one-time mint, contributing to network growth and earning rewards.

The user-friendly node initiative has a 48-hour exclusive window for the community, partners, and pre-mint winners before opening to the public on February 9th. The pre-mint phase is live from January 25th to February 4th, with winners announced on February 6th.

Analytics

New Developers

A report from ElectricCapital shows Polygon with the second highest amount of new devs in 2023, only behind Ethereum. Polygon also has the highest percentage of shared devs with Ethereum, compared to all Ethereum scaling solutions.

EVM L2 Contracts

According to the 2023 Development Report form Alchemy, Polygon had the most EVM L2 contracts created with 158M. A total of 254M contracts were created and over half were created on Polygon.

Real World Assets

According to the 2023 RWA World Report, Polygon and Ethereum host 50% of all RWA projects throughout all blockchains. Ethereum hosts 35.3$ of all RWA projects, whereas Polygon hosts 14.4%. Ethereum continues to lead the way in most on-chain activity, but scaling solutions like Polygon are gaining market share rapidly.

Polymarket

Polymarket, crypto's largest prediction market on Polygon, is setting new records with $54M in volume in the month of January. This is nearly double the previous all time high of $32M back in January 2021.

Polymarket also recorded new high in monthly new users, with nearly 9,000 new addresses interacting with dApp.

Polygon NFT Sales Volume

Polygon reached $110M in NFT sales volume in the month of January. This is the highest amount of NFT volume on Polygon since April 2022.

Polygon Users

According to Flipside Crypto, Polygon acquired the second highest number of new users in 2023, only behind Ethereum. Polygon was a close second in the year of 2023 with 15.2M new users, as Ethereum attracted 15.4 million new users.

Polygon PoS Transactions

The Polygon PoS chain passed 3.5B total transactions in January. For perspective, in May of 2021, the number of total transactions was just 100M.

Conclusion

In conclusion, January has been a momentous month for the Polygon ecosystem, marked by significant developments, partnerships, and achievements. These accomplishments cover areas ranging from blockchain infrastructure and decentralized finance to gaming, alternative investments, and media verification. The future appears promising as the ecosystem continues to thrive and innovate.