NewsCrypto has partnered with Polygon to connect Polygon’s blockchain to Stellar while improving interoperability between the two crypto networks. NewsCrypto will achieve the bridge by creating Wrapped XLM (wXLM) tokens that can be used within Polygon’s DeFi ecosystem.
To help NewsCrypto start the process, Polygon has issued a grant to develop a low-fee bridge with advanced features to connect the two ecosystems.
NewsCrypto’s core business is to educate crypto beginners; hence, the partnership significantly departs from its primary business. However, some say it is a natural evolution since NewsCrypto first launched its NWC token on the Stellar blockchain. Therefore, the NewsCrypto team has the experience to build an interoperable platform with Stellar to unlock Polygon’s DeFi opportunities via the XLM ecosystem.
Vid Gradišar, NewsCrypto’s CEO, commented: “The Stellar bridge represents an important pivot for us into infrastructure projects. The Stellar ecosystem is criminally underserved by popular interoperability solutions, far less than its capacity would imply. We knew that without us, it would’ve stayed the same, so we went ahead and connected the $10 billion XLM ecosystem to DeFi on Polygon.”
The Stellar-Polygon bridge will offer almost zero fees and nearly instant swaps underpinned by the high throughput capabilities of each blockchain. The bridge will be built using decentralised multi-signature schemes combined with Chainlink’s Proof of Reserve to make it as safe as possible. Proxima will thoroughly audit the system. NewsCrypto’s partnership with Polygon is expected to lead to other projects such as launching a new lending platform, scheduled to debut in a few months.
Sandeep Nailwal, Polygon’s Co-Founder, added: “Having XLM available on the Polygon PoS Chain means it can be used for lending, decentralised trading and any other important DeFi usage. We’re happy to be working with NewsCrypto on this and other exciting new collaborations.”
The Polygon ecosystem established itself as the primary hub for scaling apps built on the Ethereum ecosystem and has attracted over $10 billion in locked value within its ecosystem via Ethereum bridges.
The partnership with NewsCrypto will unlock a further $10 billion in locked value within the XLM ecosystem to be used for DeFi. Given Polygon’s excellent interoperability with other ecosystems, wXLM can easily port into Ethereum and other leading blockchains.