Decentralized exchanges and Automated Market Maker protocols are very popular in the cryptocurrency space today. Uniswap is the market leader for Ethereum, and PancakeSwap holds a similar position on Binance Smart Chain. DinoSwap, a project offering an AMM DEX on the Polygon network, wants to become a force to be reckoned with.
Bringing An AMM DEX To Polygon
In recent months, there have been numerous developments regarding the Polygon ecosystem. It is a more efficient network than Ethereum and one that operates at much lower fees. For both users and DeFi developers, this creates some intriguing possibilities to explore. Numerous Ethereum-based solutions have already integrated Polygon or even fully migrated to this chain because of the benefits it can provide.
Because of all that, one would almost forget some developers are natively building on Polygon’s technology stack. DinoSwap aims to onboard the top projects on any given blockchain and incentivizes liquidity for project tokens with DINO. Users holding the DINO token can earn other tokens of projects on the Polygon blockchain. An accessible concept, although that is not a guarantee for accomplishing a high total value locked figure capable of rivaling top DEXs. Soon, DinoSwap will be launching its very own in-house decentralized exchange (AMM).
Although the total value locked for Polygon has been rising steadily in the past few months, that doesn’t automatically spill over to projects running on its blockchain. Even though DinoSwap has substantial financial backing, including DeFiance, hashed, DFG, and Spartan Group, the team will need to deliver on its promise of multi-chain liquidity farming. It is evident that multi-chain support is currently a hot topic in DeFi, and Polygon is seemingly in a good position to introduce even more liquidity.
DinoSwap Is On A Tear
DinoSwap has a large community and a growing number of farmers that provide liquidity to the Fossil Farms. Its current pools offer ways to earn various tokens that reside on the Polygon blockchain. With burn and non-burn pools as well as games that burn DINO tokens, the supply of DINO will stabilize and maybe decrease over time.
Anyone is free to create a Jurassic Pool for their token where users can stake DINO tokens with no lock-up periods to earn other tokens.
There is also the Paleo Bridge, letting users swap to and from Ethereum and Polygon. In addition, numerous tokens besides DINO are supported, which can power many token swaps over the months to come. Finally, letting users swap their value across both networks is a smart addition, as various Ethereum DeFi enthusiasts may be inclined to check out what is going on on the Polygon chain and vice versa.
The main attraction is the Fossil Farms, where users stake LP tokens to earn DINO. Every pair has a different APR, with current rates at a healthy ~200-300% for top farms. In addition, several of these Farms have multipliers attached to them, which will run out eventually to normalize the rewards users can earn.
Decentralized finance on Polygon is gaining momentum, and there are many options for users to explore. DinoSwap is shaping up to be a top-yield farm on Polygon and has ambitions to go cross-chain. Very few yield farms have security audits and VC backing, making this an interesting project with vast potential.