NewsCrypto has developed the bridge between Stellar and Polygon which is now live on Mainnet. It has integrated the Chainlink’s Proof of Reserve feature to ensure the highest standard of security. This bridge allows the XLM users to transfer their tokens to Polygon from the Stellar blockchain. Moreover, it also allows Polygon users to get exposure on XLM without switching blockchain.
Significantly, if a user transfers XLM tokens to Polygon then they acquire wXLM (wrapped XLM) tokens and this can be exchanged for Stellar token via bridge. As both chains have low gas fees, the swapping fee is just XLM irrespective of the amount. Besides, this fee covers the smart contract and Chainlink Proof of Reserve node transaction costs.
Polygon is the world’s largest full-stack Ethereum scaling solution, with a thriving DeFi ecosystem. This bridge was in its development phase while the public testnet became live in early October. As every phase is properly tested, with all optimization the bridge is ready to allow billions of dollars in liquidity on Stellar to get access to Polygon’s DeFi ecosystem.
Chainlinks’s Proof-of Reserve Serves This Bridge
The idea behind Chainlink’s integration with NewsCrypto is that the Proof of Reserve function in Chainlink ensures that all balances and transactions are synchronised by all means of independent and trustworthy data sources.
NewsCrypto is an all-in-one trading environment that focuses largely on education, providing both newbie and experienced traders with everything they need to enter the world of cryptocurrency and advance their skills. Whereas, Chainlink uses oracle network for enabling hybrid smart contracts. Decentralized finance (DeFi), insurance, gaming, and other key businesses use Chainlink to safeguard billions of dollars in value for smart contracts.
The common term for both chains, Stellar and Polygon are they have relatively low transaction fees but different use cases. Stellar is used for cross-border transactions while Polygon makes EVM based DeFi protocols which will be accessible to all. If users utilize this bridge then they can keep their XLM tokens and spend on Polygon dApp. On the other hand, DeFi users who already use the EVM ecosystem can trade XLM without switching chains. The team is working hard on innovative DeFi protocol, so users should be up to date on social pages to know updates.