- Polygon’s (POL) AggLayer receives first native stablecoin support.
- This move promises significant benefits for chains, applications, and users connecting to the protocol.
- AggLayer promises to connect all of Web3 on top of Ethereum.
AggLayer, a Polygon (POL)-backed interoperability solution, is gaining increasing attention as the Ethereum ecosystem seeks to address fragmented liquidity and user experience.
Following support from Movement Labs and most recently Magic Labs, the project has now received support from Agora, a leading stablecoin issuer promising enhanced accessibility and liquidity.
“Big leap”
Polygon’s (POL) AggLayer receives first native stablecoin support. In an announcement on Monday, November 11th at the ongoing Aggregation Summit in Bangkok, Agora said it would provide native AUSD support for AggLayer, allowing connected chains and projects to seamlessly utilize it as a means of payment, transaction, collateral, and store of value. And more. This move makes AggLayer more accessible to users, providing deep liquidity to the project.
As Agora highlighted, native AUSD support allows the AggLayer project to avoid the time-consuming process it would normally take to get stablecoin support on-chain.
Commenting on the development, Polygon (POL) Labs CEO Marc Boiron described it as a “big leap forward” for interoperability protocols.
"AUSD is a major leap forward for the AggLayer community, bringing liquidity and interoperability to a whole new level," he asserted. "By making AggUSD (sic) native to every chain in the AggLayer, developers and users across the community can easily transact, store value, and build applications without needing to manage fragmented liquidity. This is a critical step toward realizing the vision of a fully interconnected, seamless Web3 experience."
Meanwhile, in addition to standard stablecoin benefits, AUSD promises a significant revenue boost to the project, a point highlighted by Agora co-founder Nick van Eck.
"Unlike models that funnel profits to a single exchange or partner, AUSD is about building a more egalitarian economic network. Income from AUSD is shared across network participants, and we’re teaming up with businesses and chains to let them use this cash flow in the manner that suits their business," van Eck disclosed.
Agora claims that this additional cash flow will allow projects to create better products and user experiences.
Polygon (POL) AggLayer
AggLayer is an interoperability solution at the core of the Polygon (POL) 2.0 architecture that aims to horizontally connect as many chains as possible on top of Ethereum using zero-knowledge technologies.
According to Polygon (POL), AggLayer provides near-instantaneous, atomic, and fungible asset transfers across the chain at maturity. However, this protocol only provides an integration bridge for projects built on the Polygon (POL) technology stack, the Chain Development Kit (CDK). Plans to release version 0.2, which will support a wider range of EVM chains, are set for December 2024.
AggLayer secures chains using “pessimistic proofs,” which are cryptographic guarantees designed to allow chains to share bridges without additional trust assumptions. The mechanism attempts to prevent a chain from withdrawing more assets than it has deposited on the bridge by verifying the chain state, chain account, and accounts of all connected chains before allowing a transfer.
On the flip side
- Despite its claimed advantages, AUSD has yet to achieve mass awareness and adoption in the cryptocurrency space, with an estimated market capitalization of $70 million. Market leader depending on the situation Tether USDT The market capitalization is over $120 billion.
- No date has been released for when AUSD will be released on AggLayer.
Why This Matters
Native AUSD support provides another key element needed to make Polygon’s AggLayer goals a reality.
To learn more about Polygon (POL), read:
Get Magic Labs UX Boost with Polygon’s (POL) Web3 Integration Plan
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