New Layer 2 Token Swap and DEX Aggregator Goes Live on Polygon Wallet

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Last Updated on 16 December 2021 by CryptoTips.eu

Jeroen Kok

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Polygon, a protocol for building and connecting Ethereum-compatible blockchain networks, has launched a Layer 2 token swap and decentralized exchange (DEX) aggregator.

The Polygon team revealed this development in an announcement on December 15. Henceforth, users of the protocol wallet can swap tokens instantly as the team added the function to the wallet. Powered by 0x API, the feature enables users to trade different tokens internally.

Rather than using a third party DEX aggregator to get the best rates, the new token swap app fetches the best rates in the market to enable fast and low fees swaps. This according to the announcement is meant to be a one-stop solution for swapping nearly any tokens on Polygon.

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Increasing access to easy swaps

The swapping of tokens can be challenging because of high fees on blockchains like Ethereum and also because of low liquidity. The use of DEX aggregators has helped to solve the problems to an extent by facilitating token swaps at the best possible rates.

However, being able to swap directly from a wallet app could be a way to make token swaps much more convenient. The app can be accessed on any desktop browser or mobile device, which gives as many potential users access to these tokens as possible.

Polygon itself is a Layer 2 scaling solution created to help bring mass adoption to the Ethereum blockchain. Its main function is to reduce congestion on the Ethereum network by equipping developers to create scalable decentralized applications (dApps).

The launch of this token swap app and DEX aggregator could greatly enhance the attainment scalability to make token swaps and use of dApps cheaper and seamless.

Polygon (MATIC) up 7%

The launch of this in-wallet token swap could be a gamechanger for Polygon’s native token Matic. All transaction fees are paid using the token including on Polygon sidechains, which means the new token swap feature will increase its use for transaction fees.

The token is up by over 7% in the last 24 hours following the announcement and is currently trading around $2.15. The larger portion of the crypto market is also recovering from the dip though, so the price bounce may not be directly linked to the announcement.