What is Polygon?
Polygon, previously known as MATIC network, is an interchain scalability solution. It gained popularity as an answer to some of the challenges faced by Ethereum today. The rise of Polygon has been especially noticeable, with a large number of Decentralized Apps (DApps) flocking from Ethereum to Polygon due to the high transaction costs and scalability issues.
Polygon aims to provide faster and cheaper transactions by effectively transforming the Ethereum network into a full-fledged multi-chain system by making other blockchains compatible with the network.
Polygon has been one of the fastest-growing DApp platforms. It has established itself as one of the most DeFi-focused chains, by rapidly becoming the preferred destination for Decentralized Finance (DeFi), NFTs, and blockchain gaming and now has over 500 DApps on the network.Polygon DeFi DApps
Top Polygon DeFi DApps
Polygon is emerging as a practical solution for a lot of DeFi projects as Ethereum 2.0 is still rolling out. The high scalability and low gas expenses have attracted significant interest from both users and developers. Here’s a list of DeFi DApps on Polygon by category.
InstaDApp is a DeFi DApp that acts as a bridge that connects several different protocols on the decentralized web. This means that InstaDApp integrates different DApps into one single application to manage all their functions. Instead of switching between the protocols, it is possible to manage everything through the user-friendly interface of InstaDApp. All that a user needs to use InstaDApp is a web3 wallet like MetaMask.
Autofarm is a cross-chain yield aggregator that enables users to get returns on their assets from yield farming pools by simply staking them in Autofarm vaults. It has an efficient and reasonable cost-pricing model alongside an optimal compounding strategy which has helped Autofarm become one of the best yield aggregators in terms of final APYs.
Beefy.Finance is a multi-chain yield optimizer that enables users to get maximum returns on their assets while removing the cost and hazzles of managing the assets. The protocol has a combination of features that allows users to automate their DeFi farming and optimize the returns. Beefy.Finance also has a vault system that can automate the best yield farming opportunities.
Decentralized Exchanges (DEX)
Balancer is a non-custodial portfolio manager, liquidity provider and price sensor. The protocol allows users to swap ERC20 tokens trustlessly across all Balancer’s liquidity pools. Anyone on Balancer can create or add liquidity to customizable pools and earn fees and tokens. Balancer’s key mission is to introduce an elaborate financial protocol that offers programmable liquidity in a flexible and decentralized way.
SushiSwap is another DEX that allows the swap of ERC20 tokens through automated liquidity pools. SushiSwap provides a wide range of services including lending, staking, yield farming and liquidity mining solutions. SushiSwap, which was originally forked from UniSwap, remains one of the most popular DApps on Polygon and is used by novice and experienced users alike.
Yield Farming and Liquidity Mining
Aave is a leading lending protocol that can be used to earn interest on deposits and borrow assets. It is an open-source non-custodial protocol. Aave distinguishes itself by the range of cryptocurrencies in which loans are available. The availability of over 20 leading cryptocurrencies and the option of choosing between fixed and variable interest rates has made Aave one of the most popular DeFi platforms on Polygon.
7. Cream Finance
Cream Finance is a decentralized lending protocol for individuals, institutions and protocols to access financial services. Part of the yearn.finance ecosystem, the DApp is a blockchain agnostic protocol serving users on Ethereum, Binance Smart Chain and Polygon. The protocol borrows source code from the likes of Compound, Balancer, Curve and UniSwap. The CREAM token allows users to lend, borrow, stake assets and help govern the network.
OpenSea is a peer-to-peer marketplace for crypto collectibles and NFTs. It provides the link between the consumers, and serves as a one-stop shop to discover, buy, and sell any non-fungible digital asset. The DApp makes NFTs searchable, usable and organized. The trading and sales history of digital items can be found on OpenSea in a readable and trusted way. OpensSea is touted as the first and largest NFT marketplace and has all sorts of unique digital items available on the platform.
Augur is an open, global prediction market protocol in which users receive payouts when they predict a winning outcome. Additionally, Augur acts as a decentralized oracle – a source that verifies real-world occurrences. Decentralization ensures that Augur cannot be censored by governments that deem prediction markets as gambling. It also ensures honesty in reporting the outcome of events using crowd wisdom to cancel out fraud.
Polymarket is an information markets platform that allows users to speculate on the outcome of real-world events. Speculators can bet on the world’s most highly-debated topics, and follow the odds to garner accurate insights about the future. Polymarket can also aggregate collective knowledge and provide the general public with an unbiased source of truth in regards to the likelihood of a certain event that might happen in the future.