Welcome to Cryptonary’s Polygon Digest, your one-stop source for all things Polygon.
So, what’s happened recently?
Polygon zkEVM is almost here!
zkEVM means zero-knowledge Ethereum Virtual Machine.
Zero-knowledge (zk) is a more efficient way of proving transactions on blockchains, without showing any of the data (to protect privacy).
Ethereum Virtual Machine (EVM) means it’s compatible with Ethereum’s coding language. So, decentralised apps (dApps) can seamlessly integrate with it.
There’s now less than a week until launch. How is the crypto ecosystem reacting? Hint: there have been some big partnerships!
Oh, and one of Polygon’s co-founders is leaving the project! To find out why, you’d better read on.
Let’s dive in!
- Polygon zkEVM Mainnet Beta goes live on March 27.
- zkEVMs are regarded as the holy grail of Ethereum scaling (as we explain in detail here), and this release could be a defining moment in the layer 2 battle.
- Some major protocols are launching on Polygon ahead of the launch – they don’t want to miss out. These include Compound, Unstoppable Domains, Lido and Convex.
- Polygon has partnered with Immutable, to create a Web3 gaming-focused zkEVM rollup.
- Polygon’s co-founder, Anurag Arjun, has left Polygon Labs. With him goes Avail, the Polygon-created monolithic blockchain (we explain this below). Avail will become an entirely separate project.
Disclaimer: This is not investment nor investment advice. Only you are responsible for any capital-related decisions you make and only you are accountable for the results.
Polygon zkEVM mainnet beta is finally here!
It’s due for release March 27th.
zkEVMs are often referred to as the holy grail of Ethereum scaling. Ethereum founder Vitalik Buterin himself has said they are the future.
Polygon’s zkEVM launch will be a defining moment in the layer 2 arms race.
Speaking of Vitalik, he’s a special guest for the launch, and a partnership with Polygon zkEVM and ETHGlobal has been teased (this is sure to be bullish).
📢 zkDay 2.0
🗓 MARCH 27
✨Launch of Polygon #zkEVM Mainnet Beta✨
The journey to the frontiers of Web3 that will take Ethereum further than ever before ⚡️
special guest ➡️@VitalikButerin ⬅️ 👏🏿
& we're joining forces w/ @ETHGlobal [more on that soon] pic.twitter.com/icYOTzLlzm
— Polygon (labs) (@0xPolygonLabs) March 16, 2023
To reduce risks at launch, Polygon have launched several security features (which the team call “training wheels”).
The main one is a Security Council multisig (a wallet that requires multiple people to confirm a transaction) which can perform emergency upgrades (to patch bugs or exploits).
After 3-6 months, if no bugs are reported, these “training wheels” will be removed.
Top protocols are coming running
We’ve seen an influx of projects to Polygon, ahead of the zkEVM launch.
Compound has been deployed to Polygon.
Compound III has been deployed to Polygon!
You can now use WETH, WBTC, and MATIC as collateral to borrow USDC, with market-leading efficiency. pic.twitter.com/Ax5va7Uz5H
— Compound Governance (@compgovernance) March 7, 2023
Unstoppable Domains has teamed up with Polygon Labs to launch .polygon website domains.
🔗user-owned, digital identity with .polygon domains🔗
Polygon Labs is teaming up with @unstoppableweb to launch .polygon, a new #Web3 domain, giving users a portable identity across 750+ dApps, games, and metaverses.
More: https://t.co/QqoQUmPQMM pic.twitter.com/aXZGYx1lNl
— Polygon (labs) (@0xPolygonLabs) March 14, 2023
Lido has launched as wstETH (wrapped staked ETH) on Polygon, allowing liquid Ethereum staking directly on the blockchain.
The L2 expansion continues: wstETH comes to Polygon 🟣@0xPolygon becomes the third L2 for Lido’s staked ETH, following in the footsteps of Optimism and Arbitrum.
Bridge your wstETH to the Polygon ecosystem to benefit from low gas fees + exciting DeFi opportunities.
— Lido (@LidoFinance) March 9, 2023
Convex has expanded to Polygon.
Latest on Medium: Convex Expands to Polygon + more inside! https://t.co/FE8mFPNVDQ
— Convex Finance (@ConvexFinance) March 9, 2023
Many of these protocols are expanding to a range of different layer 2s, with Convex also on Arbitrum, and Lido on Arbitrum and Optimism. Compound is discussing a move to Arbitrum in their governance forum too.
This really shows the heat of the layer 2 battle, and that Polygon is a real player. It’s attracting some of the biggest decentralised finance (DeF)i protocols in the space.
The future of gaming?
Immutable, a leading Web3 gaming platform, has joined forces will Polygon, to create Immutable zkEVM.
The partnership with Immutable:
⚡️ simplifies the decision-making process for devs
⚡️ provides the fastest route from concept to launch
⚡️ opens up the largest & most liquid ecosystem for end users
— Polygon (labs) (@0xPolygonLabs) March 20, 2023
The blockchain will be a zkEVM rollup focused on Web3 gaming.
Put simply, it’s an additional layer built on top of Ethereum, to allow fast, cheap transactions.
With half of all blockchain activity in 2022 coming from games, there’s clearly a massive opportunity to capture an underserved market.
Why is a co-founder of Polygon Labs leaving (and taking Avail with him)?
Polygon Avail was a modular blockchain built by Polygon Labs. The Polygon spin-off was publicly announced in mid-2021.
Now, Polygon’s co-founder Anurag Arjun is leaving Polygon Labs and acquiring Avail.
Unlike large blockchains such as Ethereum, modular (meaning made up of many different modules, or parts) blockchains break down the essential functions of consensus, security, data availability, and execution, and handle them separately.
In the past, people have debated whether monolithic or modular blockchains are the optimal solution.
As Ethereum layer 2s have progressed, monolithic has been seen as the gold standard, as they security has been battle-tested, the ecosystems are thriving, and scalability issues are being solved in incredible ways.
With Polygon much more focused on the Ethereum, it appears the cost and workload of Avail was a burden, and that is the reason for the split. There was no acquisition cost for Anurag Arjun.
With its separation from Avail, Polygon Labs has clearly chosen the monolithic side.
Polygon stated the split is a win that will allow “Polygon Labs [to] increase Ethereum-alignment and focus on developing scaling products.
$MATIC Technical Analysis
As far as technicals go, not much has changed for MATIC since last week. We are still expecting ranging because of the indecision from the last two weeks (long wicks, short bodies).
MATIC’s weekly market structure is bullish, so we’re still on track for $1.30. However, reaching that level could take a few more weeks given the fact that Bitcoin needs to break resistance first ($28,750), so altcoins can follow on the way up.
- Polygon zkEVM code has undergone two external and one internal audit by a group of 26 researchers. The audits will be made public prior to launch; the first has already been released.
- Polygon partners with Salesforce for an NFT-based loyalty programme. Salesforce, a titan in the consumer relationship management (CRM) industry, plans to help its clients onboard to Polygon. Its managed platform will help them create token-based loyalty programs on the blockchain. This is a massive vote of confidence in crypto from Salesforce and could bring significant volumes to Polygon if successful.
- Transak is launching a direct fiat-to-crypto bridge on Polygon zkEVM. This will allow users to onboard into the Polygon ecosystem with a bank account or credit/debit card.
- Polygon announced the release of $EUROe, a digital euro stablecoin on the Gen-X network.
- Polymarket has launched an $ARB price prediction market, where users can bet on whether the token will trade above or below $1 one week after launch.
With Arbitrum’s token ($ARB) launching this week, and Polygon’s zkEVM next week, the battle of the layer 2s is heating up!
Polygon zkEVM could be a serious competitor. It’s a first mover in the zkEVM rollup space and brings with it Polygon’s extensive resources and already-established community. There’s a serious chance it could take a large share of the market.
The crypto ecosystem is aware of this, with major protocols launching on Polygon ahead of the zkEVM. We expect this to continue after the launch too.
We’re going to keep a close eye on the project as it launches. If all goes well, this could be extremely bullish for both Polygon and $MATIC.
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