Swarm Markets deploys DEX on the Polygon Network
A blockchain bridge within the platform UI will help investors move assets seamlessly from Ethereum to Polygon to take advantage of the low-fee pools.
Swarm Markets has deployed its decentralized exchange (DEX) on the Polygon Network, posing a lower-cost option for users of the BaFin-regulated DEX and its existing Ethereum-based products.
Swarm Markets is the first licensed automated market maker (AMM) protocol available on the layer 2 solution and is joining an industry trend to offer alternatives to Ethereum’s rising network fee.
Other leading names within the blockchain space have made the same move, including DEX Uniswap, NFT platform OpenSea, and metaverse market leader Decentraland, who all added support for layer 2 solutions within the last year.
Move to Polygon is part of Swarm Markets’ scaling efforts
Philipp Pieper, co-founder of Swarm Markets, commented: “Access to DeFi needs to be at a price point that isn’t cost prohibitive to Main Street investors, which is why expanding our licensed AMM to layer 2 solutions is crucial. Web3 is coming for financial markets and we’re building trustless infrastructure that gives people autonomy to build wealth while retaining control of their assets at all times.”
Sandeep Nailwal, co-founder at Polygon, said: “DeFi promises to drive innovation that simply isn’t possible in traditional finance, bring services to the unbanked and give regular people access to wealth management tools currently only available to elite institutions. As part of that mission, we are very excited to support Swarm Markets in their scaling efforts.”
Timo Lehes, co-founder of Swarm Markets, added: “We’re creating infrastructure, products and services that preserve the innovation of DeFi combined with the reassurance of regulation. We are driving growth of the entire DeFi ecosystem by implementing low-fee layer 2 solutions and bringing traditional financial products on-chain, like securities, to better serve consumers.”
SX1411 token standard opens door to off-chain assets
Ethereum fees have been a pain for many within the crypto space. Polygon has risen in significance because it seems to make it more accessible and scalable for users. Network fees cost a few cents per transaction and allow investors to swap in and out of positions more actively to better respond to market volatility.
Swarm Markets’ native token SMT has already been ported to the Polygon blockchain, extending the DeFi platform’s incentive and reward system onto the new chain. MATIC, Polygon’s native token, is among the new assets added to Swarm Markets along with a MATIC faucet.
Swarm Markets’ newly announced SX1411 token standard is also compatible with Polygon and allows the exchange to support tokens backed by underlying assets whether “off-chain,” such as certain regulated securities, or “on-chain,” like NFTs.