Ingolstadt, Germany, 28th October, 2021,
The long-awaited Stellar – Polygon token bridge, developed by NewsCrypto, is now live on mainnet and it has integrated Chainlink’s Proof of Reserve feature in order to ensure the highest possible standard of security. The bridge gives all XLM holders the ability to swap their tokens from the native Stellar blockchain over to Polygon, the largest full-stack Ethereum scaling solution with a rapidly growing DeFi ecosystem, and it gives Polygon’s users the opportunity to have exposure to XLM without having to go to a different blockchain. When a user swaps their XLM tokens to Polygon, they receive wXLM (wrapped XLM) tokens, which can always be redeemed back to the native version on Stellar through the bridge. Given that both chains have very low gas fees, the swap fee is only 1 XLM (regardless of amount), in order to cover the transaction costs for the smart contract and the Chainlink Proof of Reserve node.
The bridge has been in development – supported by a Polygon development grant – for some time now, and the public testnet version went live in early October. Now, with all the optimizations implemented and thoroughly tested, the bridge is ready to open the door for billions of dollars of liquidity on Stellar to access all that Polygon’s DeFi ecosystem has to offer. Here, as well as in cross-chain solutions in general, security is absolutely essential, and that’s why NewsCrypto implemented Chainlink’s Proof of Reserve feature to make sure that the balances and transactions are constantly synced up by means of independent and trustworthy data sources. This way, even if the data flow of the bridge itself is somehow compromised, the relevant data is always backed up by an independent Chainlink node on Stellar.
Although there are some similarities between Stellar and Polygon in that both have extremely fast and cheap transactions, the two chains have very different use cases. Stellar is mainly built to optimize for cross-border value transfer for institutions and everyday users alike, while Polygon makes EVM (Ethereum Virtual Machine)-based DeFi protocols accessible for everyone. With the bridge, users can still hold on to their XLM tokens and use them on any Polygon dApp that they choose, while DeFi users that are used to an EVM environment can trade XLM without having to move to a different chain. All this, however, is only the first step of NewsCrypto’s development on Polygon and the associated Chainlink integrations, as the team is hard at work on an innovative DeFi protocol of their own, so be sure to stay up to date on their social media pages!
NewsCrypto is an all-in-one trading ecosystem that is primarily focused on education, giving both beginners and expert traders alike everything they need to step into the world of crypto and take their skills to the next level. Recently, the project has expanded to providing novel solutions for DeFi in partnership with different protocols and development-focused projects.
Chainlink is the industry standard oracle network for powering hybrid smart contracts. Chainlink Decentralized Oracle Networks provide developers with the largest collection of high-quality data sources and secure off-chain computations to expand the capabilities of smart contracts on any blockchain. Managed by a global, decentralized community, Chainlink currently secures billions of dollars in value for smart contracts across decentralized finance (DeFi), insurance, gaming, and other major industries.
Chainlink is trusted by hundreds of organizations, from global enterprises to projects at the forefront of the blockchain economy, to deliver definitive truth via secure, reliable oracle networks. To learn more about Chainlink, visit chain.link, subscribe to the Chainlink newsletter, and follow @chainlink on Twitter. To understand the full vision of the Chainlink Network, read the Chainlink 2.0 whitepaper.
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- Luka Boškin