As stated in 2022, Polygon (MATIC) has formed numerous alliances with industries outside of the cryptocurrency business, which have aided in the expansion of the Layer 2 ecosystem. The long list includes businesses like Starbucks, Nubank, and Mastercard.
While future partnerships with MATIC's network are anticipated, it's crucial to draw attention to a collaboration between Polygon and decentralized exchange (DEX) Uniswap on the cryptocurrency market (UNI).
First, it's important to remember that both blockchain platforms may be quite well-known in 2023 in terms of drawing additional consumers to them.
In addition to providing a scaling solution for Ethereum (ETH), Polygon is one of the big growth bets because it is involved in areas like the rollup that could garner attention this year.
Given that centralized platforms are losing favor with cryptocurrency investors, Uniswap may profit from the interest in DEX in the crypto market.
One of the biggest cryptocurrency scams in history occurred in 2022 when the centralized FTX exchange stole billions of dollars from investors who put their faith in Sam Bankman-(SBF) Fried's persona. Activity on DEX significantly increased as a result in November.
How do Uniswap and Polygon Complement Each Other?
DeFi movement was little in 2022, but it has demonstrated the significance of decentralized exchanges. As DEX Uniswap becomes more efficient because to Polygon, one of the greatest problems in this sector has been addressed.
The Layer 2 development team has highlighted that Polygon's low fees have helped Uniswap gain more services and even drawn more traders to the DeFi platform.
This cooperation was advantageous for Polygon as well, since it saw a significant boost in its total value locked (TVL), possibly as a result of the project's greater awareness in the decentralized financing market.
This collaboration demonstrates how the network efficiency of Polygon and the leadership liquidity of Uniswap work together to create a more attractive DeFi that has the potential to draw more and more people into the movement of decentralizing finance and move blockchain users closer to their ideal world free of bank ties.
How Would This Collaboration Impact DeFi Users?
Prior to Polygon, decentralized exchanges were forced to pick between the low transaction volumes of blockchains that were less safe or centralized than those of the market's top cryptocurrency and the security of the Ethereum (ETH) network.
Undoubtedly, a well-written smart contract could aid in shielding a DEX against costly attacks. However, a decentralized site may be further protected by having a strong network like ETH.
The amazing truth is that nobody wants to spend exorbitant rates to perform a straightforward switch, for instance.
But doing so shouldn't entail sacrificing security, and Uniswap uses Polygon to address that issue. In this regard, we may still expect to see a significant number of DeFi initiatives switch to a solution that offers scalability without compromising security, especially once the crypto market resumes its bull run and significant volume is once more observed on DEXes.
