Polygon and 0x project will spend $10.5 million to develop an API platform and infrastructure that will help onboard 1 million users to the Polygon and Ethereum networks.
The funding will go towards building a robust 0x API on Polygon. The 0x API will allow projects to develop Decentralized Finance apps on the Polygon network and connect their applications to other external platforms such as decentralized exchanges on the Ethereum network.
The API will allow DeFi developers to tap liquidity for their DeFi projects from the decentralized exchanges, in a faster, reliable, and easier way. Liquidity is considered important for any robust trading app since it allows users to access trading pairs at any time they wish to trade, without lacking exchange for their preferred pairs.
The funds will support the DeFi projects and their developers to use the 0x API on the Polygon blockchain. Since Polygon is scalable, developers can scale their apps without failing to assess the liquidity from decentralized exchanges, most of which are built on the Ethereum network today.
Polygon is a side-chain scaling solution for Ethereum. It was built as a side chain that answers to most of the scalability issues experienced on Ethereum today including hefty fees, poor user experience, and low transactions per second. Thus, those who build decentralized apps on Polygon to benefit from its scalability and low transaction fees, will also not miss out on connecting to decentralized exchanges for liquidity.
0x project, on the other hand, is the developer framework that powers decentralized exchanges on Ethereum.
With the API, DeFi projects will be able to integrate Polygon trading and tap liquidity from multiple exchanges including Quickswap, SushiSwap, CurveFinance, Dodo, mstable, DFyn, Cometh, and more. The developers will be able to combine this accessible deep liquidity with Polygon’s fast and flexible architecture.
The 0x API on Polygon will launch with support for integration of Matchaxyz, Dexguru, Dexkit, MyCrypto, Set Protocol, Zapper.fi, and Zerion. DeFi developers will be able to pull liquidity from these exchanges when the API goes live.
The team will also support 0x RFQ and open order book orders later on in future iteration of the API.