Clever Aave to Matic bridge keeps track of yields

The first Aave-friendly Ethereum to Matic bridge has opened for service, allowing users to port Aaves interest-bearing aTokens backward and forward in between the DeFi protocol and the much faster, cheaper layer-two network.
The bridge was established and launched by Nick Mudge, Lead Solidity Developer of Aavegotchi. It differs from previous Ethereum to layer-two bridges as it interacts with the Aave protocol to keep track of interest being paid on aTokens locked up on the Ethereum side of the bridge.
According to Mudge, the bridges smart contract transforms users Aave aTokens– such as aUSDC, for example– to maTokens, which are then offered to the user on the Matic Network. When maTokens are transformed back to aTokens, the user gets the original quantity of tokens sent out through the bridge plus interest accumulated during the time they were secured the bridge agreement.
✄ AAVEGOTCHI BRIDGE IS OPEN 4 BUSINESS!
Send $GHST and $USDC to @maticnetwork in style with our frenly UI
More tokens coming soon!
Attempt it here https://t.co/yFgMJtEaj5 pic.twitter.com/6GudHIUGBT
— Aavegotchi (@aavegotchi) January 21, 2021
Mudge sees maTokens as possibly valuable to Matic-related liquidity providers, as it is now possible to make not only transaction charges but interest when providing out maUSDC. This can presently be accomplished via Quickswap, the platforms # 1 DApp, which is a direct clone of Uniswap modified for Matic.
As Quickswap runs on Matic, its deal charges are a small portion of those currently being withstood by Ethereum users, which makes Matic a luring option for developers aiming to decrease the cost of DeFi-related transactions.
Purchasing maTokens in @QuickswapDEX on @maticnetwork makes a lot of sense if you think about it. You dont lose on gas costs purchasing and making maTokens and you can provide your maTokens to liquidity pools in @QuickswapDEX and earn trading costs– without losing any interest you make.
— Nick Mudge aavegotchi (@mudgen) January 20, 2021
Called after the dApp-based NFT staking video game of Mudges creation, the Aavegotchi Bridge was at first created for the sake of making it less expensive to perform actions within the video game. When gamers of the video game began complaining of Ethereums high gas costs, Mudge took the creative approach of developing a user interface between Aave and Matic so game-related transactions might be conducted quicker and with substantially decreased costs.
” We wanted to launch Aavegotchi on Ethereum first and deal with carrying out some performance on Matic Network later,” Mudge informed Cointelegraph.
” But the day we were going to release on Ethereum the gas fees went sky high and it would have wrecked our launch. So we delayed and chose to move the whole job to Matic Network.”
Mudge thinks that clever agreement developers will significantly employ layer-two solutions like Matic for performing organization on Ethereum as the network remains jammed and excessively expensive.
” Because the gas costs are so short on Matic Network it unlocks for more composition/interaction between various smart contracts and procedures to develop kinds of functionality and sophistication on the wise agreement level that werent possible prior to.”
Aave is currently the second biggest DeFi platform according to the overall worth locked within the platform.
Title: Clever Aave to Matic bridge tracks yields
Sourced From: cointelegraph.com/news/clever-aave-to-matic-bridge-keeps-track-of-yields
Released Date: Fri, 22 Jan 2021 04:25:14 +0000
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