[MATIC] - MIP6 Collateral Onboarding [updated]

1. Who is the interested party for this collateral application?
Polygon Network

2. Provide a brief high-level overview of the project, with a focus on the applying collateral token.
References
MATIC is the ecosystem token of Polygon Network (previously Matic) - a 100% EVM compatible L2 scaling solution with current TVL of more than $6B and 350+ dapps deployed across DeFi, NFT, Gaming and DAO space. With the recent rebranding Polygon has now expanded in scope and vision and have transformed into Polygon with the aim of becoming an Ethereum scaling aggregator - thereby providing developers with L2 solutions in addition to the POS/Plasma chain (mainnet launched April 2020), zk and Optimistic Rollups and Validum chains (part of the roadmap - as seen on website).

3. Provide a brief history of the project.
Matic team has been making valuable contributions to the Ethereum ecosystem for a long time, even before it’s public surfacing as Matic Network. This includes working on implementations of Plasma MVP, developing the WalletConnect protocol and the Ethereum event notification engine Dagger.
MATIC token has now been listed over 30 exchanges globally (most recently Coinbase), and is trading against more than 50 base pairs. In terms of market cap MATIC is valued at $1.63B and FDV of $3.26B. 24H trading volumes of >$250M make it one of top 30 traded coins across DEXs and CEXs…

Polygon POS/Plasma hybrid chain is a production ready L2 scaling solution that is 100% EVM compatible, decentralized with 88 validators and battle-tested with 200+ dapps building on it. Average txn/day around 200k and 260k+ wallet addresses. These numbers are increasing at a faster rate than competitors owing to the NFT craze and DeFi initiatives launched by dapps on Polygon.

You can check all the dapps building on Polygon here on awesomepolygon.com .

4. Link the whitepaper, documentation portals, and source code for the system(s) that interact with the proposed collateral, and all relevant Ethereum addresses. If the system is complex, schematic(s) are especially appreciated.

5. Link any available audits of the project. Both procedural and smart contract focused audits.

6. Link to any active communities relating to your project.

7. How is the applying collateral type currently used?

The MATIC token lies at the heart of the Polygon ecosystem with multiple use-cases. Primarily the MATIC token is used for paying gas fees on the Polygon network. It runs the ecosystem, supporting top Dapps. Additionally you can participate in the Proof-of-Stake consensus of the blockchain as a validator node and earn 12-14% APY in MATIC tokens.

8. Where does exchange for the asset occur?
MATIC is one of top traded assets on all CEXs. On-chain pairs are most liquid on Uniswap and Bancor.

P.S. MakerDAO would be one of the first platform on L1 to support MATIC tokens as collateral → attracting CEX liquidity into DeFi. The MakerDAO community would be supporting an Ethereum scaling solution and also providing MATIC holders an additional revenue source in the long run.

Specifications
Author is a community member of the Polygon ecosystem.

I appreciate you taking the time to review. Please let me know if you have any questions or concerns.

9 Likes

If approved, would Polygon utilize this class of vault themselves? Are there any specifically identified users — individual or entity — who have expressed an intention to use this class of vault if MakerDAO onboarded this collateral?

Any information about demand for or attestations by particular users of a desire to use this type of vault would be helpful. Thanks!

5 Likes

As Matic / Polygon ecosystem has been growing rapidly, I can see Matic collateral playing an important role in expanding Dai supply and usage (especially Dai on Polygon). Thanks for applying

4 Likes

Given the current WMATIC/SUSHI liquidity mining and the growing TVL on Polygon, I expect this vault will become quite popular to use.

2 Likes

So much potential can be achieved through Polygon. Everyone deserves to experience it.

2 Likes

I think the same, and I agree that Matic would be a very good collateral for Maker DAO, and would be the second L2 to be accepted as collateral in the protocol.

2 Likes

Matic has demonstrated sufficient maturity in the market, has attracted the attention of many serious Ethereum protocols, and is undoubtedly my favorite network for commissions and versatility. Matic would be a great collateral :sunglasses:

2 Likes

We’ll have another greenlight poll for MATIC in the coming weeks, given the recent popularity and increased liquidity of the token.

4 Likes

MATIC and SUSHI should definitely be onboarded as collateral and hope the rest of the community approves.

5 Likes

I for one will vote for both, Matic is tearing it up! And Sushi in every Sidechain or L2 solution is present, and speaks very well of his project.

4 Likes

I’m curious if this was ever answered in private or elsewhere by people from Matic. Matic’s rise is reminiscent of the rise of LRC a few months back when that project seemed to be winning the L2 race. Things change very quickly in terms of which L2 solution gets attention.

It would be very reassuring if there was a clearer picture of how much demand there is for a Matic vault before we proceed further.

3 Likes

I think judging by TVL is the best barometer for user adoption. LRC cannot compete in that front.