How to start farming at Polygon? Why people moving to Polygon or L2 option?
I use English that I understand to write things so you can understand.
Polygon is perceived as a L2 solution on Crypto and now №3 blockchain in Total Value Locked(TVL). L2 means it’s faster and cheaper, on the contrary to what Ethereum is today. Ethereum is L1 though it’s forging ahead to L2 probably Q2 2022. Binance Smart Chain (BSC) is perceived as L1.5 since it’s an EVM(Ethereum Virtual Machine) design and do have faster speed yet cheaper fee. You can refer to a general table below regarding fees and speed to feel the difference, and you won’t be able to imagine how Ethereum transaction will cost you during peak time. Since beginners cannot accept a transaction to cost like $1, that’s why people are looking for L2 solution like Polygon. There are dozens of other chains available now but that will be another articles!
People aren’t born for Polygon, so most people still start Crypto with CEX like Coinbase, Binance, Kraken, Huobi…etc. It then become a topic that how to transfer assets from other blockchain to polygon to enjoy the low fee. Let’s assume you have Binance and start on BSC Defi already, so what you need to pickup now is to get your assets to Polygon!!
Bridge stablecoins to Polygon
There are several available options to bridge the stablecoins to Polygon from other chains. It depends on the available liquidities on the bridge Dapp to provide service, so you can try different platform if the chosen one is not available. Here we will be illustrating with Xpollinate.io
If you want to get free $MATIC token, check Camel Finance since they got a shortcut of all available options!
From BSC to Polygon
- Connect your wallet, then make sure you select the blockchain you want to bridge from and the blockchain you want to bridge to. Xpollinate support USDC/DAI/USDT bridge between BinanceSmartChain, Fantom, Matic and xDai
2. Also check the liquidity listed below and make sure the desire stablecoin has enough liquidity on both chains that you attempt to bridge. In below illustration, there is only 315 $USDC on BSC which will not be possible to bridge to $USDC from other blockchains to BSC.
3. If both are fine, click Swap. You need to sign a message first(no gas fee). Then input the amount you want to bridge. It will show you how much you will get after bridging.
4. Confirm the transaction in your wallet. Then wait for the transaction to be finished.
Other options to bridge from BSC to Polygon
What needs to be noted is that, there are other options available outside across different CEX and DEX, what you need to keep in mind is “how convenient it is to bridge?” and “what is the cost”. Once you have those information in mind, you can decide which bridge to use. One thing is sure, be prepared earlier while nobody is noticing to get more benefit as an early adaptors! Few known options for bridging solution listed below!
If you have CEX account, probably just initiate from CEX. Binance allow you to transfer $MATIC to Polygon network but not other tokens (atm). While Ascendex and MXC offers also stablecoins withdraw to Polygon, you might compare to necessary fees before continue. I personally prefer Binance given it’s reputation and user-friendly for beginners.
Why Defi on Polygon?
A QBQ(questions behind questions) will be, why should we Defi while we could use CEX like Binance? Well, you can earn more on Defi than on Binance if you know how to filter good projects and invest. You need to manage your own security in Defi that nobody can help you restore your assets if something happened. On the contrary, you can ask Binance to help if you totally forgot your password. Defi bring you more profit and the details could be found at another KYC article here. If you buy-in the Defi concept(you will after you get hands on for like a month, believe me), you will start to look for a low-cost(Ethereum out), decentralized(BSC out) blockchain with good reputation(aka famous projects are in). We have AAVE and Curve on Polygon which is an indicator how the foundation is well established.
AAVE and Curve are first two Defi projects that hold more $10B TVL in the world!!!