DeFi For All Enters Final Phase With $15 Million for Polygon Native DApps
January 28, 2022
The core development team is launching a $15 million campaign spread out over the next 6 months for decentralized applications (dApps) building solely on Polygon. The program will support specific liquidity mining (LM) and protocol development efforts and will reward projects based on on-chain metrics.
The key measure, although not the sole one, is total value locked (TVL) as calculated based on a time-weighted average price (TWAP). Below is a preliminary list of parameters to determine how projects qualify for LM and the corresponding amounts.
Some important things to note:
Only protocol teams that have never received LM incentives from Polygon can apply.
TVL must stay above the specified TWAP for a period of 1 month to get the rewards.
All dAPPs that qualify can apply if the teams can provide a publicly-verifiable address (preferably a multi-sig) and a DeFiLlama link to track TVL.
The Polygon grants team has to approve the application before qualified teams can get the rewards.
Snapshots will be taken daily and weekly of DeFiLlama and the eligibility list will be updated on a weekly basis.
If at any point, the TVL goes below the given tier requirement, the team gets rewards of the lower tier.
If the one-month TWAP falls below $5M, rewards will be paused until the TVL comes back up.
Similarly, a protocol would qualify for higher rewards if TVL increases.
Check Polygon Ecosystem DAO forum for more upcoming details on how to apply.
Aave Case Study
The #DeFiForAll program kicked off last March when Aave deployed on Polygon PoS as fees on Ethereum soared to $50-$100 per swap transaction. Liquidity mining campaigns served as a bootstrapping mechanism to more organic activity. The LM thesis is that a DeFi ecosystem needs a solid money market where more risk-averse participants pool their funds to generate more modest returns, while more risk-hungry users can borrow from lending pools at lesser rates and generate superior returns.
Polygon set aside about $40 million, or 1% of MATIC tokens, for Aave’s LM program last April to generate a healthy supply of assets on the lending pools. In just a month, the TVL on Aave-Polygon grew 100-fold to about $5 billion and stayed in that range since. The Polygon money market accounts for half of the revenue contribution to Aave from its various multichain deployments. As that program winds up, emissions will be lowered every two weeks starting Jan. 25.
Uniswap V3 Campaign
The DeFi ecosystem marked a major milestone late last year when Uniswap v3, one of the most cutting-edge protocols due its extremely high capital efficiency, deployed on Polygon. Cumulative trading volumes topped $2 billion since its launch on Dec. 22.
Polygon is moving forward with a $15 million 12-month LM campaign on Uniswap v3. The primarily eligible pairs will be ETH, BTC, MATIC and major stablecoins like USDT, USDC, DAI, FRAX, UST and miMATIC. Certain portions of the rewards would also be devoted to in-demand assets for the month and native stablecoin projects.
This campaign will serve as a catalyst for adoption, allowing users to experience the full glory of Uniswap in a nearly gasless environment for the first time. It will also coincide with a number of dApps going live on the platform as early as this quarter, including Charm Finance, Perpetual Protocol v2 and Popsicle Finance.
Keep up with the latest news on the Polygon blog and sign up for our DeFi newsletter. Be a part of our social ecosystem!
Ethereum’s shift to Proof of Stake consensus, known as the Merge, has dramatically cut Polygon’s carbon dioxide emissions, opening the path to going beyond being carbon negative and toward empowering others to do the same. The conversation has shifted from blockchain sustainability to blockchain as a sustainability solution. Join us for the second chapter of […]
Today, we are thrilled to announce that Robinhood has chosen Polygon as the first blockchain network to support its newly launched Web3 wallet. The Robinhood Wallet beta is now live for 10,000 iOS customers out of 1+ million who signed up for the waitlist in May. Together, Polygon and Robinhood are opening access to decentralized […]
Zero-knowledge (ZK) tech is one of the most prominent and promising paths to scaling Ethereum. One popular use of ZK proofs to scale Ethereum is what’s known as a zkEVM (zero-knowledge Ethereum Virtual Machine). So what is a zkEVM, and how does it help us make Ethereum cheaper and more efficient to use? Understanding the […]
Polygon has teamed up with Alpha Venture DAO and Icetea Labs to launch the inaugural Icetea Labs Accelerator Program for blockchain startups. Working in a tight three-way partnership, Polygon is co-creating an accelerator to funnel resources, mentorship, education, and business acumen to promising Web3 companies from around the world. The startups selected for the accelerator […]
Applications are open for Polygon Bootcamp Africa, launched in partnership with Xend Finance! The eight-week intensive educational course and hackathon combo will put developers in Africa on the Web3 map. This is Polygon’s biggest step in providing resources to developers, builders, and creators in Africa, and it comes during an important time. An internet and […]
Today, we are thrilled to announce that Starbucks Coffee Company is working with Polygon to provide the blockchain technology to build its recently announced Web3 experience, Starbucks Odyssey. As a result of the partnership, this new Web3-powered experience will allow Starbucks Rewards loyalty program members and Starbucks partners (employees) in the United States to earn […]
Polygon has teamed up with Moralis and Google Cloud as an official Gold-Tier-Sponsor for the Moralis x Google 2022 Defining DeFi Hackathon! From Oct. 3 to Nov. 11, hundreds of developers around the world will build the DeFi applications of their dreams, competing for prizes, bounties, and rewards from a pool of $155,000, with $50,000 […]
Entertainment can help people become more aware of and responsive to the problems we face. That's why Polygon has joined forces with the Ocean Conservation Exploration and Education Foundation (OCEEF) to advance ocean literacy by finding new and engaging ways to give people exposure to deep sea missions. The shared goal of this effort is […]
Hola readers! We announced Polygon Bootcamp Africa, an eight-week intensive educational course and hackathon combo, in partnership with Xend Finance, Polygon-based carbon compensation project Coorest has become the first Web3 initiative to have an officially verified carbon standard, and Quadrata, a passport network bringing the identity and compliance layer to public blockchains, is integrating its […]