How to use Polygon (MATIC) for DeFi

in LeoFinance19 days ago (edited)

How to use Polygon (MATIC) for DeFi.




As Ethereum’s main layer-2 scaling solution, using Polygon (MATIC) for DeFi has become extremely popular.

As a protocol and framework for building and connecting Ethereum-compatible blockchain networks, Polygon is perfect for DeFi.

For investors who are currently using Ethereum based DeFi platforms, Polygon offers a simple, fast and low-fee alternative.

Network congestion on Ethereum has driven gas fees to almost unusable levels, especially for smaller DeFi investors.

Enter Polygon.

In this section of our LeoFinance Polygon (MATIC) guide we explain how to use Polygon for DeFi and show why layer-2 scaling solutions are the future of Ethereum.

Setting up Polygon (MATIC) for DeFi

In order to use Polygon (MATIC) for DeFi, you’re going to have to first move your Ethereum onto the Polygon network.

The easiest way to do this is via the MetaMask wallet and is a lot less overwhelming than it seems at first glance.

Let us walk you through setting up Polygon (MATIC) for DeFi, in 3 simple steps.

1. Connect MetaMask to Polygon

In order to transfer funds from Ethereum, you need to connect your MetaMask wallet to the Polygon network.

After adding the MetaMask Chrome extension, click the “Ethereum Mainnet” text at the top middle of the dropdown and flick to “Custom RPC”.

Connecting MetaMask to the Matic Mainnet.

Enter the following details shown in the screenshot above:

Once you click save, your MetaMask wallet will now have been switched to the Polygon network.

To switch between Polygon, Ethereum and Binance Smart Chain (if configured), just click the “Matic Mainnet” text at the top middle to bring up the list and switch back as required.

2. Connect the Polygon Web Wallet to Metamask

With all of your funds still sitting in your Ethereum wallet, you need to transfer them onto the Polygon blockchain using the Polygon Web Wallet.

Login to the Polygon Web Wallet using MetaMask.

To connect the Polygon Web Wallet, click the MetaMask option and agree to the prompt asking for confirmation of the connection by clicking “Sign”.

Agree to the signature request on MetaMask.

You can now use MetaMask to interact with your Polygon Web wallet.

3. Move funds from Ethereum to Polygon using the Polygon Bridge

Now you’ve connected your Polygon Web Wallet to MetaMask, the following screen will open in your web browser:

The Polygon Web Wallet interface.

To move your funds from Ethereum to Polygon, simply click the self-explanatory “Move funds from Ethereum to Polygon” button.

This is the Polygon Bridge that allows you to transfer Ethereum tokens onto the Polygon network.

These can be in the form of ETH or any other ERC-20 token sitting in your Ethereum wallet on MetaMask.

On the Polygon Bridge screen, use the dropdown to choose the token you’d like to move to Polygon and enter the amount:

The Polygon Bridge screen.

Hit the “Transfer” button, confirm the transaction on your MetaMask popup showing the gas fee on this transaction and let the Polygon Bridge work its magic.

Don’t worry if the transfer takes up to 10 minutes to appear within your Polygon Web Wallet, this is just Ethereum being Ethereum.

Using Polygon (MATIC) DeFi platforms

Now that you have transferred funds to the Polygon blockchain, you can start using Polygon (MATIC) for DeFi.

Actually, you can now use your funds for any application associated with the Polygon blockchain plus any Ethereum based DeFi application.

All of the popular Ethereum based DeFi applications now have an associated Polygon version which you can connect to.

Don't forget to make sure that you’re connecting to the right one.

Some popular Polygon DeFi platforms you can use include:

  • SushiSwap
  • AAVE
  • Curve
  • Polycat Finance

Since you’re now using a layer-2 solution in Polygon, you’ll quickly notice that transaction fees are significantly cheaper than if you were still using Ethereum itself.

Just be aware that to transact on the Polygon blockchain, you still have to have a MATIC balance within your wallet to pay the associated (cheaper) gas fees.

Moving funds from Polygon (MATIC) back to Ethereum

The cool thing about using Polygon for DeFi is how simple it is to then move your funds back to Ethereum.

Simply go back to the Polygon Web Wallet and click the “Withdraw” button next to whichever cryptocurrency now sits in your wallet.

Back to the Polygon Web Wallet interface.

The Polygon Bridge will give you the option to enter how much you’d like to move back to Ethereum before you click “Transfer”.

Finally, the Polygon Bridge screen again.

Again, just confirm the transaction on your MetaMask popup showing the gas fee on this transaction and you’re in business.

Using the PoS Bridge will take about an hour to be confirmed by the network, but once it has, you’ll have those funds sitting in your Ethereum wallet once again.

Yep, moving MATIC back to Ethereum after you’ve used an associated Polygon DeFi app, is just as simple.

Note: There are also ETH fees associated with transferring tokens from Ethereum to Polygon and back.

Although once your assets are on the Polygon network, your MATIC fees are minimal.

Last thoughts on using Polygon (MATIC) for DeFi

While a lot of investors are turning to Binance Smart Chain for a cheaper DeFi fix, Polygon is gaining in popularity.

A snapshot of this interest can be seen right here within the LeoFinance community.

We have seen a number of members recently share their own experiences with using Polygon for DeFi and we’re likely to see many more.

If you’re looking for some further reading on how to use Polygon (MATIC) for DeFi, check out this excellent getting started with staking on Polygon tutorial and continue down the rabbit hole from there.

Our community is actually a treasure trove of crypto information just waiting to be discovered.

Best of probabilities to you.




Direct from the desk of Dane Williams.

Why not leave a comment and share your thoughts on using Polygon (MATIC) for DeFi within the comments section below? All comments that add something to the discussion will be upvoted.

This Polygon (MATIC) blog is exclusive to leofinance.io.

Posted Using LeoFinance Beta

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Gotta look into this. I can deposit on binance. So I used another exchanged to transfer to binancr and then to bsc and into cub x)
Wasting money on fees.

Then use the Thorchain Defi. Fees are low and generally much less switching and bridging needed! See my totorial on that.

The numerous steps requireed to get assets onto the Polygon network can certainly see your fees add up quickly.

I know that I sometimes take the power of the Hive blockchain for granted with its almost instant and free transactions.

Not quite the same seamless experience when it comes to moving crypto between Ethereum, Polygon and BSC via bridges.

Posted Using LeoFinance Beta

Aw damn, that sucks aswell.

Wouldn't it be possible to transfer coins to Metamask and then just swap them on Polygon?

Or does Metamask not store coins?

I am.in Cub and have been for a while, but I still feel like a noob in this area xD

Nice tutorial.

You can also use EvoDefi to bridge from BSC to Polygon (0.5% transfer fee).

Posted Using LeoFinance Beta

Cheers Zebedee, it was actually your getting started with staking on Polygon tutorial that inspired me.

That EvoDefi Bridge looks good at first glance.

Nice extra tip.

Posted Using LeoFinance Beta

Although the party may be over at FISH, down like 30% in a couple of days.

And it occurred to me that ETH fees may apply when you want to take your cash out of Polygon - so it's easy enough to move a few hundred at a time in, but on the way out you probably want to move larger sums!

Posted Using LeoFinance Beta

Can I use binance bridge to exchange matic tokens to erc20 tokens directly ? Or just exchange all tokens in matic network to matic tokens and send to binance, then swap or trade matic to eth in binance ? Thx

It's up to you which way you choose to exchange your MATIC for ERC-20 tokens (and vice versa).

You can also use the Binance Bridge to exchange MATIC tokens to ETH, and then to whatever Ethereum-based ERC-20 you like from there.

Have a play around and come back to share which method you find to be cheapest and most efficient.

Posted Using LeoFinance Beta

Good tutorial, let's see if I dive into this as well...

Posted Using LeoFinance Beta

When the LeoFinance team first introduced CUB Kingdoms, they also mentioned plans to expand to the Polygon network.

After this release, the community will have a real reason to dive into Polygon and give it a go for themselves.

Exciting!

Posted Using LeoFinance Beta

There are Ethereu fees associated for transfering the tokens from Ethereum to Polygon and back...You should mention that in the article.

2 time fees... Although inside Polygon, no fees which is good.

I am exploring the ecosystem but still lot of fees are eaten into my crypto because of transfering of ETH and Matic tokens...which is a let down still!!

Thanks for the heads up, I've added the following text to the guide:

Note: There are also ETH fees associated with transferring tokens from Ethereum to Polygon and back.

Although once your assets are on the Polygon network, your MATIC fees are minimal.

Moving crypto assets between chains is always going to be expensive.

But once your assets are on the Polygon network and being used for DeFi, then you will save some money.

Posted Using LeoFinance Beta

This is an awesome tutorial! Will for sure be reblogging this for the https://coin-logic.com audience but may also refer to it for our new site which used Polygon for NFTs, crowdfunding contracts, tokens, and ICOs. https://contractlogic.app

Cheers dude.

Plenty of exciting stuff happening in the Coin Logic ecosystem I see!

Posted Using LeoFinance Beta

Yeah, when I get back from vacation there will be allot of content getting started.

At first glance excellent, but if you look deeper it gets better and better.

I think this publication will be indispensable when the pLEO and the defi belonging to this smart chain are launched.

Posted Using LeoFinance Beta

I'm really excited for LEO's expansion into Polygon with pLEO.

Do you know if any more information has been released from the team about it, other than the brief mention in this introduction to CUB Kingdoms post?

Posted Using LeoFinance Beta

That's a nice tutorial @forexbrokr. Polygon DeFi is so amazing, quick, and cheap.

I feel there aren't enough great bridges available to quickly and cheaply transfer your assets from ETH or BSC to Polygon. Also, exchanges need to enable Matic Network withdrawals just like we have for ERC-20 and BEP-20.

Posted Using LeoFinance Beta

Yep, still annoying and somewhat expensive if you're always changing between networks.

In one of the comments above, @revise.leo shared the EvoDefi Bridge as another alternative.

Might be worth a look.

Posted Using LeoFinance Beta

Thanks! I actually wrote a post about popular DEXs available on Polygon. Some of them have bridges but they are mostly ETH to Polygon.

Just checked EvoDefi. It has multiple options to choose from. :) Very nice!

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Posted Using LeoFinance Beta

I can't wait for Khal and his team to launch their new platform on the Polygon network. The important thing is that until that happens we will be prepared.

Posted Using LeoFinance Beta

Yep, I'm excited for Cub Finance's foray into Polygon.

It's so cool to see how LEO and CUB are able to help interconnect all the different blockchains.

We'll always call Hive home, but having wrapped versions of our tokens available on other chains is a huge positive for everyone.

Posted Using LeoFinance Beta

Yes it's true, what LeoFinance is doing is something amazing and important for bringing paths for us across different networks. I also consider Hive to be our home and without a doubt it is a place we will never leave.

Posted Using LeoFinance Beta

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Posted Using LeoFinance Beta

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I am not 100% what if they can gain access too by just clicking the link, hmm.
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I just change all my passwords and keys for safety

Good

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