The crypto community have been noticing Polkadot, and its focus is only getting further magnified now. I have introduced the Polkadot Blockchain in my previous article that you can read here.
Polkadot at a time when we are feeling the effects of Ethereum high gas fees
Polkadot continues on with its prominence, more so now because Ethereum gas fees have been high and all of us are feeling the pinch of this because even the fee for the transfer of USTD token that we need to do in Crypto trading costs high, as tether is also a ERC2 token inside Ethereum blockchain.
Polkadot scores well on the scalability front!!
Therefore the coming of Polkadot is a welcome news to all of us who are involved in crypto. While we have seen that the Ethereum Blockchain has a limitation of not being scalable enough as the network’s transaction is limited to 10-15 transactions per second (TPS) , Polkadot network transaction limit is 100K-1 million transactions per second(TPS). Polkadot is launched on as a scalable network because it’s a POS Blockchain that processes transactions parallely instead of transacting them one at a time, as Polkadot using shrading technology.
DEFI project StaFI set to have mainnet launch inside the Polkadot Network!!
Now, DEFI project StaFI that’s built on the Polkadot Blockchain, is going to have it’s mainnet launch which will take Polkadot Blockchain into more prominence. Other Defi projects inside the Polkadot Network like Acala and SnowFork are also expected to have their mainnet launches.
DEFI application StaFI
In StaFI staking of POS tokens can be done, currently staking of 6 tokens can be done on StaFI. These tokens are - Polkadot(DOT),Kusama (KSM), Tezos (XTZ), Cosmos (ATOM), Matic Network (MATIC), Kava (KAVA), and Harmony (ONE). Like similar DEFI projects in Ethereum stakers would be rewarded for being liquidity providers. When tokens are locked for staking, another token representing the value of the locked staked token is created.
6 tokens available for staking in StaFI. Image taken from this cryptobriefing article >>
For example, for the DOT tokens that are locked in StaFI, rDOT tokens are created. These rDOT tokens can be transferred to DEFI applications in the Ethereum platform to farm yield and get rewards. This transfer of rDOT tokens to Ethereum Blockchain is possible as Polkadot is a very interoperable blockchain where assets can be transferred across different blockchains .
Following the DEFI trend, StaFi too is distributing its Governance token FIS to the platform's stakeholders.
Emergence of a DEFI ecosystem at the Polkadot Blockchain is an interesting phenomenon to watchout for
It will be interesting to watch how this DEFI phenomenon unfolds with the upcoming DEFI applications on the Polkadot Blockchain. Maybe, those who can’t participate in DEFI activities in applications built on Ethereum can now participate on with DEFI applications built on Polkadot, considering high fees won’t be an issue here, with Polkadot not facing scalability bottlenecks that Ethereum faces now.