Polygon – a full-stack scaling solution bringing adoption to the Ethereum platform – has partnered with blockchain-focused start-up Shard Labs.
The new co-op was developed in order to create a liquid staking protocol for Polygon’s MATIC token under the sponsorship of LIDO.
LIDO for Polygon PoS will soon allow users to stake Polygon’s MATIC tokens in a decentralised and secure way, and get staked MATIC in return for use in other DeFi protocols while continuing to earn staking rewards.
According to the official report, with Polygon solving problems around speed, network costs, and rising gas fees, users have a more cost-effective and frictionless way to stake, exchange, and withdraw MATIC.
Lido currently holds #8 of all DeFi by TVL ($5 billion) or 86% market domination on Ethereum which makes it a leader in liquid staking space.
Getting more capital efficiency
Sandeep Nailwal, the co-founder of Polygon said Shard Labs was a very welcome addition to the burgeoning Polygon ecosystem.
“We’re excited to support Shard and their team of developers as they build the future of liquid staking,” he said.
“This is another example of Polygon PoS becoming the platform of choice for scaling Ethereum because of its network composability.”
Polygon PoS is one of the most popular Ethereum scaling solutions, with more than 500 dApps, and is home to Sushiswap, Curve, Aave, Balancer and Kyber.
Edi Sinovcic at Shard Labs said that by bringing LIDO to Polygon PoS, the company found the solid foundation for building the future of liquid staking, as well as access to a massive user base.
“To date, one of the shortcomings of the DeFi ecosystem is the inability to generate any returns on staked assets,” he said.
“LIDO on Polygon aims to fix this and we look forward to supporting Polygon’s mission to bring blockchain infrastructure and DeFi to the masses.”
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.