Hop Protocol Cuts Polygon Withdrawal Times to MinutesAugust 11, 2021
- Hop Protocol has cut MATIC withdrawal times from Polygon to Ethereum from seven days to five minutes.
- The project has introduced a novel cross-chain automated market maker with liquidity pools consisting of MATIC and hMATIC.
- Polygon has allocated $400,000 in MATIC for Hop liquidity providers.
The Hop Protocol update allows for quick MATIC withdrawals from Polygon to Ethereum.
New Bridge Update For Polygon Users
Hop Protocol has announced a new cross-chain liquidity solution that lets users withdraw MATIC tokens from Polygon to Ethereum within five minutes. The solution bypasses the need to use Plasma Bridge, which takes up to seven days for MATIC withdrawals.
Currently, two bridges allow the flow of tokens between Ethereum and Polygon: the PoS Bridge and Plasma Bridge. Of the two, the PoS Bridge allows faster deposits and withdrawals between the two chains and is most commonly used for transfers.
The PoS Bridge takes roughly seven to eight minutes to deposit funds from Ethereum. Withdrawing funds to Ethereum mainnet takes about an hour.
The Plasma Bridge is used specifically for MATIC withdrawals because it has enhanced security guarantees. But unlike the PoS bridge, the inner workings of the Plasma implementation can take up to a week for withdrawals to go through on Ethereum mainnet.
This can lead to a bad user experience when a user wants to send MATIC to Ethereum mainnet or deposit MATIC to a centralized exchange.
To solve long the issue of very long MATIC withdrawal periods, Hop Protocol has launched a novel cross-chain automated market maker with liquidity pools consisting of MATIC and hMATIC, a bridge asset pegged to MATIC.
The protocol allows users to swap MATIC 1:1 with hMATIC tokens whenever they want to deposit or withdraw to and from Polygon.
The bridge will be able to send MATIC to Ethereum as well as other networks like xDai within five minutes rather than the seven days it takes with the Plasma Bridge.
According to the team, the Hop bridge will also be cheaper to use, but the speed of transfers will depend on the liquidity in its pools. DeFi projects like Hop’s rely on deep liquidity to operate to their best standard.
To incentivize liquidity, the Polygon team has granted $400,000 worth of MATIC rewards for Hop liquidity providers. In the first reward phase, 1,000 MATIC tokens are available each day and can be earned by staking MATIC on Hop Protocol.
Besides the latest MATIC-specific solution, Hop also runs a cross-network solution for instant USDC transactions between Ethereum, MATIC, and xDai.
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