Aave, a decentralized lending and borrowing protocol based on the Ethereum blockchain, announced that it will scale its DeFi platform and put its platform in many sidechains (sidechains), including Polygon.
Although Aave pointed out that high fees are a feature of a successful public blockchain, the firm suggested that alternative solutions were needed. The DeFi lending protocol will investigate scalable sidechains with Polygon (formerly known as Matic Network) to address high transaction fees on Ethereum. Stani Kulechov, founder of Aave, said DeFi aims to create a more inclusive and sustainable alternative to traditional finance and added the following on transaction fees:
“However, DeFi has always aimed to create a sustainable and more inclusive alternative to traditional finance. If DeFi is great, but limited to five-digit portfolios only, it will fall short on its mission to be financing for all. “
With the rise of DeFi since the summer of 2020, the Ethereum network has faced congestion and high transaction fees. Aave, on the other hand, aims to prevent high fees in Ethereum to increase the popularity of DeFi. Crypto is generally acceptable if fees are significantly reduced.
While Aave will build on Ethereum layer 1, the team will scale the platform to Polygon, a layer 2 proof-of-stake side chain that works in conjunction with Ethereum’s network. The subsidiary chian mechanism in Ethereum refers to enabling tokens on a layer 1 main chain to be used in a separate blockchain. However, it can still be moved back to the original chain if required.
Aave added that it will use a smart contract bridge that can move assets seamlessly from one network to another and will be available soon.