Polygon and Shield Finance tie up for market protection
Polygon, the Layer 2 protocol on the Ethereum network that has been in the news over the last few months, and Shield finance have tied up to offer market protection contracts for Polygon.
Shield Finance has been working with various chains as a DeFi insurance aggregator to offer market protection contracts to users against hacks, exploits, sell-offs, and other black swan events. This is an innovation in the crypto industry that traders can make use of whenever they are worried about the risks involved in the market. The company continues to tie up with various insurance providers so that it can improve slippage and coverage as well.
Denis Gorbachev, CEO of Shield Finance, said: “Polygon is a strong, versatile network and we are excited to join forces with them. Polygon has a strong reach and we look forward to working together to find new ways to grow and to provide protection options for Polygon users against market crashes and price dumps”.
The company would deploy Polygon Market Protection contracts and this can be purchased by traders to protect themselves against any major fall in the prices in the market. MATIC token holders would then be able to sell off the MATIC tokens at a pre-determined price irrespective of what the price of the token is at that time in the market.
Arjun Kalsy, VP Growth of Polygon, said: “With defi primitives finding product-market fit as seen by the number of transactions, TVL,defi derivatives are bound to take centre stage with much more increased usage. Shield Finance is set to usher in new types of derivatives. Polygon Foundation is pleased to welcome the project to the thriving Defi ecosystem.”
Polygon would be placing a link for Market Crash Protection on their website under the decentralized options category which can be clicked on by the traders who want to make use of this option.
This is one more of the services that many companies have been extending to the Polygon network as it continues to grow steadily across the trader and developer community. Many startups have started building their solutions on the Polygon (MATIC) network over the last few months as the developer community waits for Ethereum to sort out its issues over gas fees and network congestion. This is expected to be resolved in version 2.o that is likely to be released next year and it would then help to grow the crypto ecosystem even more and advance it to the next level of growth and innovation.
