While the crypto sector is facing some troubles, Polygon is shining through its partnerships and product launches. Now the network is adding the first non-cash base token, WMATIC. In addition, Deri Protocol, the novel derivative protocol on the Polygon network, is adding the token.
Deri Protocol supports multiple base tokens to offer liquidity to LPs and deposits to traders for margin. The entire process is known as liquidity framework and dynamic mixed margin. The framework allows derivative trading to reach the optimal capital efficiency, even higher than centralized exchanges.
While Deri Protocol is a novelty in itself, the protocol has added another intuitive product to Polygon. WMATIC is the first non-cash base token, which will boost Polygon’s Defi development game off the charts. With the integration, the Matic price prediction is showing quick market growth.
Using WMATIC on Deri Protocol
Currently, WMATIC holders can deposit WMATIC coins in mining pools as liquidity to mint DERI. For instance, Alicia stakes 2,000 WMATIC tokens on ETHUSD, BTCUSD/WMATIC pool. Other than DERI rewards, Alicia can also earn funding fees, transaction fees, and even the shared value of the remaining liquidated position in case of a loss. Deri protocol reflects the gains in the Profit and Loss metric. The protocol has even provided a guide to understand and undertake the process of in-house liquidity pools.
Traders can also use WMATIC tokens to trade ETHUSD, BTCUSD contracts. For example, Alicia uses WMATIC tokens as a margin and wants BTCUSD on the pool. Given the settings, multiple scenarios can take place:
- If Bitcoin’s price improves against US dollars – Alicia receives a profit after the position is closed.
- Conversely, if Bitcoin’s price degrades against US dollars – Alicia gets fewer WMATIC tokens after closing the position.
Adding reliable tokens as base coins can help both Deri Protocol and the Polygon network. It will allow the platforms to expand their Defi range and enhance user experience quickly. In addition, the integration will add to Polygon’s value proposition, allowing the network to stabilize. With the development, Defi-based projects on the Polygon network can build better frameworks to support Defi and blockchain adoption globally.
Deri protocol’s expertise in risk exposure and capital efficiency merged with Polygon’s simplicity, and framework development will help the sector grow immensely.