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.
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”.
Enter the following details shown in the screenshot above:
- Network Name: Matic Mainnet
- New RPC URL: https://rpc-mainnet.maticvigil.com/
- Chain ID: 137
- Currency Symbol (optional): MATIC
- Block Explorer URL (optional): https://explorer.matic.network/
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.
To connect the Polygon Web Wallet, click the MetaMask option and agree to the prompt asking for confirmation of the connection by clicking “Sign”.
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:
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:
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:
- 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.
The Polygon Bridge will give you the option to enter how much you’d like to move back to Ethereum before you click “Transfer”.
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.
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This Polygon (MATIC) blog is exclusive to leofinance.io.
Posted Using LeoFinance Beta