Uniswap, one of the largest decentralized exchange (dex) platforms in terms of trading volume, has announced that the dex community has approved a governance proposal to support the POLOGAN blockchain.
In terms of trading volume, statistics show that Uniswap version 3 (v3) has the largest 24-hour trading volume, with $1.5 billion exchanged on the last day. As for the Total Value Locked (TVL) in DEVI, UNISWAP has $8.6 billion on December 19, 2021. That’s $21.8 billion in TVL for the second-largest TVL financial company below the curve. On December 18, the official Twitter account of Uniswap Labs informed the public that the Uniswap community has voted to deploy Uniswap v3 contracts on the Polygon (MATIC) network.
Uniswap Labs said Saturday: “The Uniswap community voted to deploy v3 on Polygon through the governance process. Uniswap Labs will deploy the Uniswap v3 contract in a few days. Stay tuned.”
Uniswap has adopted two L2 protocols, including Arbitrum One and Optimization, both of which utilize Optimization Rollup, so users can take advantage of the ETHeruem network to save transfer fees, and L2 Fees. The information indicated that it would cost $31.74 to swap tokens on-chain through Layer 1 (L1), $2.63 for an exchange using Arbitrium, and $2.29 for an exchange using Optimization.
Polygon CEO Mihailo Bjelic introduced Uniswap’s proposal on November 20, saying: “Polygon PoS can bring a lot of benefits to dex, and Polygon is aligned with Ethereum and its values.” When Bjelic released the At the time of the proposal, one proponent wrote: “I would like to see Uniswap v3 on the Polygon chain. ETH fees kill us all. Polygon is a battle-tested solution that saves users from slow [transactions] and high costs.”
The POLOGAN blockchain has been integrated with several platforms such as Curve, Aave and Opensea. However, Curve Finance supports seven different blockchains, which also include Avalanche, Fantom, Arbitrium, Harmony, and Xdai. Polygon recently announced the launch of a $200 million fund to support social media with Web3 and blockchain technology. Additionally, Polygon paid $400 million for the Mir agreement after acquiring the Hermez network (now Polygon Hermez) for $250 million in August.
What is DeFi?
The first entry among the top DeFi interview questions would obviously point towards its definition. Decentralized finance is actually a financial ecosystem developed over the Ethereum blockchain network with various protocols and platforms. DeFi helps in easily moving around cryptocurrency tokens. At the same time, it also helps in trading, lending, and borrowing cryptocurrency tokens.
What does the future of DeFi look like?
As of now, there is no specific answer to this question, but the future looks bright for DeFi as it is slowly becoming mainstream. Technological advancement in the underlying infrastructure for DeFi is faster than ever with new innovative ideas popping up daily. 2021 looks like a great year for DeFi seeing the recent developments.
Is DeFi legal?
Yes, almost all DeFi projects or protocols need to abide by financial regulatory measures licenses to function regardless of whether they’re centralized or decentralized. Thanks to DeFi, financial watchdogs (e.g., the SEC) have started to notice the crypto space more than ever.
Is DeFi safe?
Yes, almost every protocol undergoes smart contract audits to ensure the codebase is secure and free from bugs and vulnerabilities. Majority of the popular protocols adopt strict security measures to ensure your crypto assets remain safe. Still, it’s advisable to conduct your due research before investing in any project.
Do I need some kind of cryptocurrency to participate in DeFi?
Yes, you would need cryptocurrency to participate in DeFi. Since Ethereum is the platform of choice, most DeFi projects’ tokens are based on the ERC-20 standard. Hence, it would be better for you to hold some ether for the sake of ease.
Do I need a crypto wallet for DeFi?
Yes, a digital wallet is a prerequisite for you to be able to dabble in the field of DeFi. There are several wallet options available for interacting with DeFi applications — MetaMask, WalletConnect, TrustWallet and Argent being the popular ones.
What are the important benefits of DeFi?
The primary objective of DeFi focuses on resolving the issues evident in traditional finance. Traditional finance depends on intermediaries such as banks. However, DeFi applications rely on code for specifying the resolution of any potential dispute. Subsequently, users have the ability to maintain comprehensive control over their funds. This can help in reducing costs related to use of financial services products to ensure a frictionless financial system.
The deployment of DeFi on blockchain takes away any specific point of failure, and data can be spread easily across various nodes. So, each node has copies of transactions carried out on the network. Therefore, it is difficult to impose censorship and a possible shutdown of service. The most significant benefit of DeFi points out to the improved accessibility of financial services for a broader audience.
How do DeFi applications work?
Another top mention among DeFi questions to ask in an interview definitely points out that it’s working. DeFi works through the development of dApps on a blockchain network like Ethereum and using smart contracts for automation. By using the two facets, DeFi applications could easily accommodate various financial services on a specific network. Presently, there are many notable examples of dApps tailored for lending automated loans known as crypto loans. Many apps related to DeFi also include the creation of stablecoins, investment options, asset exchange, and others available presently.