Matic Network (MATIC), an India-based blockchain team tasked with building Ethereum (ETH) scalability solutions, has announced that veteran stablecoin DAI by Maker DAO will integrate with its infrastructure.
DAI will go live on Matic Network (MATIC). Why is this important?
According to the official announcement by the Matic Network team, DAI, the crucial stablecoin for decentralized financial instruments (DeFi) ecosystems, will integrate its Ethereum (ETH) scalability solutions.
1/ To start Matic’s Stablecoin spree, @MakerDAO’s $DAI, widely considered the foundation stone of Defi on Eth, is available on Matic Mainnet!🤝— Matic (@maticnetwork) September 15, 2020
Over 600 products have integrated #DAI, and it remains the backbone of the DeFi industry, with ~430m DAI currently circulating. pic.twitter.com/NwHrNgTPBb
Since Matic Network significantly increases the throughput of Ethereum (ETH), this integration will bring low-latency transactions with trivial costs. This collaboration is timely due to enormous gas price spikes caused by DeFi-related Ethereum (ETH) overload.
Also, this release may significantly advance the development experience for engineers that use DAI in these solutions. At press time, more than 600 blockchain products accept DAI in several ways.
Meanwhile, the Matic Network team treats this integration as the first step in the stablecoin segment. The rest of the major stablecoins are considering implementation of Matic as well, the team claims.
Second-layer solutions become DeFi catalyst
It should be noted that DAI is not the only stablecoin that decided to leverage Layer Two solutions to deal with Ethereum (ETH) network barriers. As covered by CryptoComes previously, the ERC-20 version of U.S. Dollar Tether (USDT) integrated with Plasma by OMG Network (formerly OmiseGo) in order to increase the speed of Bitfinex transfers.
Also, Paolo Ardoino, CTO of Bitfinex and Tether, shared plans to implement ZK-rollups, another popular L2 solution for the Ether-based version of USDT.
Prominent DeFi engineer Andre Cronje, inventor of Yearn.Finance "yield farming" ecosystem, admitted that many stablecoins will migrate to Layer Two. According to him, this revolutionary migration will make stablecoin transfers instant and "non-congested."
Along with that, the switch to Layer Two may lead to another wave of regulatory restrictions and centralization threats.