🟪 PolyPulse #16: Liquidity Mining 2.0 finally deployed on Polygon
Also, check more about the Polygon Village, launching in the first week of April’22.
Howdy family!
Welcome to Poly Pulse - your guide to staying up-to-date on the latest trends in the Polygon DeFi ecosystem.
This newsletter breaks down top stories, developments, updates, and trends from the first week of April 2022 and a farming opportunity.
Whether you are a newbie who has just entered the DeFi ecosystem or a knowledge seeker who wants to keep yourself updated, PolyPulse newsletter is the best place to stay ahead of everyone in the community.
In the first week of April 2022, Polygon has grown its daily user base for the fourth consecutive week, pushing to 415k from 402k users during the last week of March 2022. The biggest mover in the top 10 dApps (by users) is Decentral Games, which added 39% of users weekly and is nearing 13k active weekly addresses. The primary reason is the increasing popularity of the application.
Quickswap (60k users), Kyberswap (19.5k users), and Sushiswap (13.5k users) remained the highest used DeFi applications.
Another notable launch by Polygon was Polygon ID which they launched during Polygon Ignite, in an IRL event hosted in Dubai. Privacy is a fundamental human right, and Polygon ID empowers the users to reclaim it. It enables verification based on proving verifiable information rather than sharing it with the verifier.
This enables multiple use cases on the blockchain, specifically DeFi, where people prefer to be anonymous. However, they can remain anonymous with ID and yet be verified and create their on-chain reputation.
Polygon ID has the following properties:
Blockchain-based ID for decentralized and self-sovereign models.
Zero-knowledge native protocols for ultimate user privacy.
Scalable and private on-chain verification to boost decentralized apps and decentralized finance.
Open to existing standards and ecosystem development.
Scalara launches NFTI, the blue-chip NFT index
The Scalara NFT index provides diversified exposure to a rising new asset class at the intersection of art, culture, and blockchain technology. NFTs are non-fungible tokens that have their unique data and proof of ownership stored on a blockchain.
As an innovative feature, the Scalara NFT Index includes returns on top of NFT floor price performance by utilizing inventory staking on the NFTX platform. Inventory staking allows NFTX vault users to earn yield without the traditional risks associated with liquidity providing.
NFTI is a token tracking the Scalara NFT Index, and is available for trading through aggregator Slingshot on Polygon and Arbitrum.
Scalara is the index provider behind the DeFi Pulse Index, the leading benchmark of blue-chip DeFi protocols
Disclaimer: Keep in mind that NFTs are risky assets and past performance is no indicator of future performance. In addition, it is always advised to do your own research regarding any protocols that you use.
Polygon has finally deployed the first-ever KPI-based Liquidity Mining (LM) 2.0 campaign in yield farming for protocols.
How is this campaign different?
dApps are selected based on KPIs like Weekly Average Users (WAU) or Total Value Locked(TVL).
All dApps that never got LM before are now eligible.
Fully transparent and verifiable.
Requires no KYC verification, and one cannot game the system since the logics are hardcoded on-chain.
How is it beneficial for dApps building on Polygon or wanting to migrate to Polygon?
Anonymous teams can apply for the campaign.
Every month, the distribution is evaluated, and dApps working harder get more allocation the following month.
Projects choose where to use funds accrued from the LM.
Who are the winners of the first month of LM 2.0?
The campaign will continue for six months, and for the first month, 28 dApps have qualified to receive the rewards. The proportion is distributed, and their names can be seen in the image below.
Can a dApp still make it?
If you want to migrate to Polygon, or are a Polygon dApp who didn’t qualify, you can still make it in the next month’s distribution. Based on the KPIs, you would be able to make it to the next month’s list and be eligible for the rewards.
For more details, refer to the FAQ.
The Polygon Ecosystem DAO is launching a new initiative known as the Polygon Village. It is an attempt to look beyond just the grants provided by the DAO to create a self-sustaining ecosystem within itself.
It will help the projects by enabling expert talks to learn more about how to evolve in the ecosystem and remove all the hurdles. It also allows more bounties, true composability among budding dApps, job boards, and welcome vouchers to enable sustainable and fast growth by the ecosystem.
This initiative will be launched later this week.
Take regular profits on Polygon using Dollar Cost Average strategy
Mean Finance is a DCA protocol. It enables users to Dollar Cost Average (DCA) any ERC20 into any ERC20 with their preferred period frequency by leveraging both Chainlink and Uniswap V3 TWAP oracles. DCA is an investment strategy in which an investor divides up the total amount to be invested across periodic purchases of a target asset in an effort to reduce the impact of volatility on the overall purchase. The purchases occur regardless of the asset's price and at regular intervals. To explain this please follow the below example:
Mean Finance and Balancer are audited. However, farming strategies entail protocol risks, market risks, smart contract risks, and more. Treat this strategy as experimental, and never deposit more money than you can afford to lose.
Moving funds from ETH to the Polygon network became unchallenging. Nexo launched a new Multichain bridge to enable automatic and immediate transfers with no bridge fees. Users can also transfer funds to Nexo, using the Polygon PoS chain.
2. The first ever, unsecured consumer loan was made on Polygon, through Teller in Singapore.
Is DeFi innovation dead?
Rumors have it that the innovation on DeFi is slowly dying. As far as my opinion goes, we are just fueling up. In one of my recent Panel Discussions with the founders of Quickswap, Claystack, and Algebra Dex, we all agreed that tons of innovations are happening. Wall Street is yet to come, the derivative markets are yet to evolve, and the deep liquidity and composability are yet to be seen in their truest form. - Aishwary Gupta
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