Introduction to Polygon

Get up to speed with the Polygon network.

With our upcoming Public Preview on Polygon, it’s time for a clear overview of what Polygon exactly is and what its advantages are.

What is Polygon exactly?

Polygon is a set of scaling solutions made for the Ethereum blockchain, one of which being Polygon POS. This latter solution is the chain we have deployed the Hifi lending protocol on.

Polygon POS is an Ethereum sidechain leveraging a Proof of Stake consensus mechanism. The network has its own validators, and is compatible with Ethereum smart contracts. Fees are lower on Polygon thanks to a more centralized network and a series of scalability improvements compared to the Ethereum network.

Why Polygon?

The reason why we chose Polygon for our public preview is simply because it makes for an ideal testing ground. It requires real funds, doesn’t have high fees like on the Ethereum mainnet, is compatible with Ethereum smart contracts and has a great bridge relaying Ethereum with its own network.

User behavior changes when real funds are at play. This is why it is incredibly important for us to first try out the protocol on Polygon, before deploying it on the Ethereum mainnet. The lower fees of Polygon enable the whole community to try out the protocol, and not only those who are able to afford the Ethereum gas fees.

About Hifi

Hifi (formerly Mainframe) is a Lending Protocol that allows anyone to borrow against their crypto. Hifi uses a bond-like instrument, representing an on-chain obligation that settles on a specific future date. Buying and selling the tokenized debt enables fixed-rate, fixed term lending and borrowing — something much needed in decentralized finance today.

Mainframe Token (MFT) is the native utility token that will be used for:

• Governance votes
• Staking to ensure the safety of the protocol
• Rewarding contributors to the ecosystem

What can you do with the Hifi Lending Protocol:

• Borrow: Lock collateral in a vault to mint fixed-rate, fixed-term debt tokens. These debt tokens can be swapped for instant liquidity allowing users to leverage long, yield farm, or pursue other strategic trades without selling their collateral tokens.
• Lend: Buy fixed-rate, fixed-term debt tokens for a discount. When the term expires they can be redeemed for face value, earning lenders a predictable return on their investment.
• Provide Liquidity: Earn trading fees by providing liquidity between debt tokens and stablecoins on an Automated Market Maker (AMM).

About Polygon

Polygon (Previously Matic Network) is the first well-structured, easy-to-use platform for Ethereum scaling and infrastructure development. Its core component is Polygon SDK, a modular, flexible framework that supports building multiple types of applications.

Using Polygon, one can create Optimistic Rollup chains, ZK Rollup chains, stand alone chains or any other kind of infra required by the developer.

Polygon effectively transforms Ethereum into a full-fledged multi-chain system (aka Internet of Blockchains). This multi-chain system is akin to other ones such as Polkadot, Cosmos, Avalanche etc with the advantages of Ethereum’s security, vibrant ecosystem and openness.

Join the Hifi community on Discord here.