Polygon Continues Expansion Play With DeFi Focus, Forming A Decentralized Autonomous Organization (DAO)
Ethereum infrastructure developer Polygon is making some big moves as it seeks to appeal to the decentralized finance (DeFi) space.
On Thursday, the company announced that it would increase its focus on DeFi as it looks to capture the space. First on its agenda is the formation of a Decentralized Autonomous Organization (DAO).
Polygon’s blog post invited community members to share their views on a possible DAO. The company plans to create committees that will promote possible discussions between projects such as Sushi Aave and QuickSwap as it looks to bring DeFi to its users.
The blog post went on, highlighting Polygon’s belief that a DAO is the next logical step in its DeFi mission. Polygon also explained that it would use part of its #DeFiForAll fund, which stands at $100 million, to begin the process of forming a DAO.
“As the Polygon ecosystem grows, the committee members have a front-seat opportunity over others to increase cross-collaboration for their products. Voting for elections of new members could be implemented in multiple ways like by using staked MATIC on PoS or via the DAO token holders.”
Polygon Grows its Ecosystem
Polygon’s focus on DeFi is coming just a week after the company incorporated ZK-rollup project Hermez Network in a deal reported to be worth $250 million. In an announcement, Polygon explained that Hermez would be a part of its suite of solutions, with its name changing to Polygon Hermez.
As a zk-rollup, Hermes helps to verify the accuracy of a large batch of crypto transactions. The transactions themselves are executed by an outside ecosystem, and proofs are immediately generated. These proofs are posted to the Ethereum blockchain, helping the chain to save block space and speed up transaction confirmation times.
As part of the deal, all holders of Hermez’s native HEZ token will be able to exchange them at a swap ratio of 3.5 MATIC: 1 HEZ.
Polygon added that HEZ will be phased out, although it hadn’t set a date for that yet. The company will also absorb Hermez’s team, which comprises 26 people. The employees will be deployed to join Poygon’s team, working on projects such as an Ethereum Virtual Machine (EVM)-compatible solution.
Polygon has also made strides in improving its MATIC token’s utility. Last month, the MATIC mainnet was fully incorporated into the Binance platform, making it easier for Binance traders and users to make MATIC-based transactions through their accounts. The integration also allows them to interact with decentralized applications like Balancer and SushiSwap.
While the move focuses specifically on the MATIC mainnet token, Binance also plans to support BEP20, ERC20, and BEP2 MATIC associated tokens. The exchange is the latest to receive MATIC mainnet integration, with Polygon also completing the steps with Huobi and the Coinbase Wallet.