Polygon, a Layer 2 solution on the Ethereum network, has tied up with Aave grant recipient RabbitHole to incentivize new users for making deposits into Polygon.
RabbitHole platform had recently received $50K in grants from the Aave Grants DAO and the company has proposed to use this grant to reward new users who deposit tokens into any of the MATIC markets on the Aave app. They hope that this will improve engagement on the Aave app and the new users would stick around and help in the growth of the overall ecosystem by contributing to its development.
The reason that RabbitHole chose MATIC is almost the same as for others who have rushed into the Polygon network over the last few months to do their development and growth. The gas fees in the network are much lower than in Ethereum ETH and the liquidity in MATIC is lower at this time which helps to bring in relative value, the company said.
The idea is to create a quest and for the first 2000 users who deposit funds into the Polygon MATIC network and confirm it on the RabbitHole platform, would be rewarded with a share of the $40K prize, the company said.
The quest would run for a period of 2 weeks and the winning users will be rewarded with an NFT as well. But the twist here is that the Matic tokens that are received would be locked for a period of 1 year which means that the users would not be able to use them during the lock-in period.
The Polygon network continues to grow in a strong manner over the last few months as the number of users and developers moving into the network far exceeds those on other networks. It is likely to face some strong challenges in the coming months from other Layer 2 solution networks and also due to criticism over its customer service. It is also expected to suffer when the Ethereum 2.0 network launches sometime in 2022 but the supporters of the Polygon MATIC network believe that there is space for everyone to grow and hence they believe that 2.0 should not affect the MATIC and other layers 2 protocols too much.
For now, the Polygon network is basking in the limelight which is likely to continue at least till the end of the year and it is expected that the developers and the owners of the Matic network do enough to keep their infighting aside and focus on upgrading their network to meet the growing demand.
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