NewsCrypto, an all-in-one crypto suite platform, announced on September 23 that it will be working in collaboration with Polygon to build an interoperable bridge that connects Polygon blockchain to the Stellar ecosystem.
According to the announcement, NewsCrypto is set to create Wrapped XLM (wXLM) tokens compatible with Polygon’s DeFi platform; this will be the first Stellar-Polygon bridge. Notably, NewsCrypto’s native token NWC was originally debuted on the Stellar blockchain, making them a suitable candidate to build the interoperable bridge.
The partnership also marks a significant milestone for the NewsCrypto team as they pivot towards infrastructure projects. Before this shift, the main focus was on educational content and other supporting resources for newbie and veteran traders.
NewsCrypto CEO Vid Gradišar commented on this milestone, noting the underlying potential in building a Stellar-Polygon bridge,
“The Stellar bridge represents an important pivot for us into infrastructure projects. The Stellar ecosystem is criminally underserved by popular interoperability solutions, far less than its capacity would imply. We knew that without us, it would’ve stayed the same, so we went ahead and connected the $10 billion XLM ecosystem to DeFi on Polygon.”
Bridging Polygon to Stellar
Polygon’s DeFi ecosystem has been gaining significant traction with innovators opting for scalable Layer-2 solutions over Ethereum and other Layer-1 blockchains. The partnership between Polygon and NewsCrypto is expected to scale the liquidity within this growing Layer-2 DeFi platform.
“With the newest Stellar – Polygon bridge designed and developed by NewsCrypto, the Stellar network community can now transfer liquidity and engage with Polygon’s growing ecosystem,” noted Polygon’s VP of Growth Arjun Kalsy.
Per the announcement, NewsCrypto has already received a grant from Polygon to develop the advanced and low-fee bridge. It goes on to highlight that the bridge will be offering almost instantaneous swaps between Polygon and Stellar blockchain.
NewsCrypto also confirmed the bridge leverages Chainlink’s Proof of Reserve to maintain the correct balance of swap wallets and decentralized multi-sig schemes to enhance its safety. So far, Proxima has done a thorough audit of this system.
Polygon’s Co-Founder Sandeep Nailwal has expressed optimism on this milestone, emphasizing the potential that lies ahead,
“Having XLM available on the Polygon PoS Chain means it can be used for lending, decentralized trading and any other important DeFi usage … We’re happy to be working with NewsCrypto on this and other exciting new collaborations.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.