NewsCrypto will be joining forces with Polygon to improve interoperability and connect the Polygon blockchain to Stellar, creating Wrapped XLM (wXLM) tokens that will be usable in Polygon’s DeFi ecosystem.
The NewsCrypto platform is an all-in-one crypto suite, known for its comprehensive set of crypto-specific tools for all users, helping users trade regardless of their current knowledge level. The company has now received a grant from Polygon to develop an advanced, l ow-fee bridge that would connect the two ecosystems. The partnership is a natural evolution for NewsCrypto, representing a departure from its core business.
Newscrypto’s NWC token was originally launched on Stellar. With this previous knowledge, the NewsCrypto team holds the necessary experience to build an interoperable platform with Stellar, connecting the XLM ecosystem to the DeFi opportunities on Polygon.
Polygon – a protocol and a framework for building and connecting Ethereum-compatible blockchain networks, is pleased to collaborate with NewsCrypto to build the Stellar-Polygon bridge.
“Having XLM available on the Polygon PoS Chain means it can be used for lending, decentralized trading and any other important DeFi usage,” said Sandeep Nailwal, Co-Founder of Polygon. “We’re happy to be working with NewsCrypto on this and other exciting new collaborations.”
Previously, to move assets from Stellar directly to Polygon, users would have to go through Ethereum, but when the network traffic for Ethereum increased so did the fees. With this new Stellar-Polygon bridge users are offered a near-instantaneous swap and almost zero fees, thanks to the high throughput of both blockchains. It is also engineered to be as safe as possible, using decentralized multi-sig schemes and Chainlink’s Proof of Reserve to ensure the correct balance of the swap wallets. The system has undergone a thorough audit by Proxima.
The Polygon ecosystem emerged in 2021 as the primary hub for scaling Ethereum-based apps, collecting over $10 billion in value locked in the ecosystem through bridges from Ethereum. By partnering with NewsCrypto, a further $10 billion in value in the XLM ecosystem will be unlocked for usage in DeFi. Through Polygon’s good connectivity with other ecosystems, wXLM could easily be ported into Ethereum and many other blockchains.
“NewsCrypto is looking to deploy their learning solution stack and becoming a part of the Polygon network. 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,” said Arjun Kalsy, VP Growth at Polygon. Vid Gradišar, CEO of NewsCrypto, commented in a similar vein “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.”
The Stellar bridge is nonetheless the first of many NewsCrypto projects together with the Polygon community, with a lending solution on the platform expected to come in the next few months.