Welcome back to the Polygon Weekly Overview. The best place for Polygon community members to get up to speed on the chain’s latest updates, metrics, releases, insights, ecosystem developments and more. All in one place.
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The percentages and metrics are based on a 7-day timeframe, unless noted otherwise.
🟪What happened: Compound and Gauntlet launched Morpho-powered lending vaults on Polygon with $3 million in incentives.
🟪Why does it matter: This collaboration combines Compound protocol with Morpho’s infrastructure and Gauntlet’s risk management to help expand DeFi lending options on Polygon.
The vaults hope to bring in an improved lending environment to the ecosystem with features like secure vaults and composability. This could reduce governance risk and allow users to integrate these vaults safely in a variety of products.
Morpho uses a liquidation loan-to-value ratio (LLTV) that can help lower risks for users as the protocol specifies the minimum collateral needed while borrowing. The LLTV creates a safety buffer that can protect borrowers and lenders with a transparency in liquidation risk that both parties are able to monitor. This means users can clearly understand their position and know exactly how much collateral they need to maintain to avoid liquidation, reducing risk and minimizing losses.
Similarly, Polygon also launched the Fluid Money Market with over 1.5 million in POL incentives. Currently, Fluid on Polygon is at $28.34 million since its launch in early March.
The markets can leverage Polygon’s low transaction fees, high throughput, and established liquidity for lending. With these integrations, users can have multiple competitive lending options on Polygon, creating a diverse DeFi ecosystem.
🟪The big picture: The expansion of these lending protocols on Polygon can help grow DeFi on the network leveraging technology like Plonky3 and its proof-of-stake network to deliver performance and capital efficiency to users.
As more DeFi protocols like Compound and Morpho join Polygon’s ecosystem, users can gain easier access to borrowing and earning interest as well as yield opportunities. The lending TVL across DeFi platforms currently stands at $39.62 billion and could expand further through increased accessibility on Polygon. This growth displays the practical financial tools that retail and institutional investors can use on the network.
Learn more about the Compound x Morpho x Gauntlet lending markets on Polygon in this X Space
Tune into the latest episode of QuickSwaps’ The Aggregated to learn about market tariff impacts
Read about how Agglayer’s ZK technology can provide secure cross-chain messaging
Watch the Session 2 of the Agglayer Educational Series to learn more about zkVMs
Check out the latest episode of Pancakes & Predictions on US recession, government shutdown and NCAA tournament outcomes
Fluid Markets on Polygon are live on Superlend for direct deposits and yield earning
Read about Polygon Labs CEO Marc Boiron’s vision on stablecoins in his interview with CoinGape
Brickken has launched on Polygon PoS to expand multi-chain tokenization capabilities
Read about how Stripe helps 3M locations and online marketplaces with crypto payments via Polygon PoS
Want to dive into the Polygon ecosystem full-time? Find the latest job postings here.
Join the Lumia AMA session with StealthEX to learn more about the projects and future on March 26 at 11AM EST
Are you a dev? Join the Polygon Community Grants Program to receive funding to build on the network
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This information is for entertainment purposes only. It should not be considered financial advice, nor should it be used to make investment decisions. Cryptocurrencies are high risk and you should consult a financial professional before making any financial decisions. Make sure you do your own research.