Hop announced today that instant MATIC withdrawal from Polygon to Ethereum or other scaling solutions is now ready for its users. It helps the users move their assets more freely between blockchains and scaling solutions.
Besides, instant liquidity mining rewards for liquidity providers on the Hop platform are available. It’s another great news for Polygon users and those who use rollup solutions on Ethereum.
Faster Transaction Between Rollups
There are numerous layer-two solutions for the Ethereum blockchain, among which Polygon has been successful in attracting many projects and users. Using these solutions and moving assets between them and the connected layer-1 network need tools and features. Hop is a solution provider in this section and now adds MATIC withdrawal to its protocol.
Polygon has been able to reduce the time of transactions in the Ethereum blockchain from about three hours to just one hour. But Hop believes that the primary token of this solution, MATIC, hasn’t experienced much of the improvements yet. It’s the reason it has added instant withdrawals for MATIC tokens in the protocol.
There are currently two bridges for moving assets between Ethereum and Polygon. A PoS solution and a Plasma solution are available. A plasma bridge is mainly used for moving MATIC between networks. Although it provides more security for users, the withdrawal time is long and takes up to seven days for MATIC holders to move their assets to an exchange, for example.
The new solution from Hop decreases the withdrawal time for the MATIC token to about five minutes and also decreases the gas price. Polygon has embraced the new solution and will reward users, too. According to the announcement:
“To top things off, the Polygon team is granting $400,000 worth of $MATIC rewards to Hop liquidity providers in the $hMATIC — $MATIC AMM over the next year to help us attract and sustain deep liquidity. In other words, liquidity providers will earn trading fees on every $MATIC transfer through Hop and $MATIC liquidity mining rewards on top.”
As mentioned above, liquidity providers on Hop can enjoy instant withdrawal of their rewards. They can provide MATIC or hMATIC tokens in pools and withdraw their staking rewards instantly to Ethereum blockchain.
Solutions like Hop help Polygon and other Ethereum scaling solutions provide a better experience and attract more mainstream users. When moving assets between these solutions and traditional blockchains like Ethereum becomes easier and faster, more projects will launch on them that will ultimately help the ecosystem grow faster.
If you found this article interesting, here you can find more DeFi News
