Polygon Looks to Onboard 100 Million More DeFi Users by Launching Own DAO

August 21, 2021, 10:15 AM AEST - 1 month ago

Having seen massive adoption from DeFi protocols, interchain scalability solution Polygon is planning to debut a decentralised autonomous organisation (DAO) with the aim of improving users’ DeFi experience while also attracting the next 100 million users to the DeFi sector.

Polygon to Bootstrap DeFi Growth Through DAO

Polygon is a Layer-2 scalability solution that targets DeFi projects on the Ethereum blockchain. In a recent announcement, the company said it had seen massive adoption and economic activity from several DeFi protocols, including Sushiswap, Curve, Aave, Balancer and others, all of which are based on Ethereum.

These projects brought along with them more than just TVL but their communities.

Polygon

In order to further streamline the DeFi experience, Polygon will be creating a DAO. The DAO will allow developers and communities to build a better DeFi and Web3 ecosystem and essentially helps onboard the next 100 million DeFi users to the Polygon network.

What is DAO?

DAO is an organisational model for DeFi that spreads the governance of a protocol or system to the community or network rather than a central body. Basically, it’s a governance system that eliminates centralisation. 

Polygon says it will use part of the US$100 million #DeFiForAll Fund to accelerate the creation of the DAO system. This won’t be the first time Polygon gets involved in DAO development. Previously, the company collaborated with 0x protocol to spearhead a US$10 million DAO for projects that use 0x APIs on their network. 

It’s safe to mention that Polygon is running more like life support for most DeFi projects on Ethereum. Owing to Polygon properties, QuickSwap has been able to grow into a US$1 billion TVL decentralised exchange. Forked from Uniswap, QuickSwap allows users to swap tokens at lightspeed due to Polygon’s scalability solution.

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