Polygon (MATIC) is part of my portfolio since I expect this Ethereum (ETH) sidechain to grow due to the outstanding development activity in India. Furthermore, they have signed deals with major companies like Disney and continuously advertise around corporate branding to pump their token price. However, there are some pros and cons. Let's start by the pros.
Advantages of Polygon chain
- Easy to use
- Very low transaction fees
- Good connection with centralized exchanges allowing to deposit and withdraw easily
- Most of the ERC-20 tokens are on Polygon chain, as well as major protocols like Uniswap or Aave, and hence it is a cheap way to make DeFi
Drawbacks of Polygon chain
- It is not really decentralized, the Nakamoto coefficient is only 4, and the recent hardfork had only to be voted by 13 holders to pass...
- It does not support non-ERC-20 tokens like on the Binance Smart Chain, for instance Cosmos (ATOM), Polkadot (DOT) or Tezos (XTZ)
- They do not plan any airdrop like on some other layer-2s, e.g., Arbitrum (no token yet... may come soon) or Optimism (second one)
That being said, I use Polygon for a small part of my portfolio, and have invested on the MATIC/AAVE liquidity pool, with a good APR...
Next time I will talk about Loopring (LRC), since I recently had many questions on this topic.
Please find below two links to earn more cryptos...
