Hop Protocol Cuts Polygon Withdrawal Times to Minutes
Key points to remember
- Hop Protocol reduced MATIC withdrawal times from Polygon to Ethereum from seven days to five minutes.
- The project introduced a new automated cross-chain market maker with liquidity pools made up of MATIC and hMATIC.
- Polygon has allocated $ 400,000 in MATIC for the Hop liquidity providers.
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The update of the Hop protocol enables rapid MATIC withdrawals from Polygon to Ethereum.
New Bridge Update for Polygon Users
The Hop protocol has announcement a new cross-chain liquidity solution that allows users to withdraw MATIC tokens from Polygon to Ethereum in five minutes. The solution avoids using Plasma Bridge, which takes up to seven days for MATIC withdrawals.
Currently, two bridges allow the circulation of tokens between Ethereum and Polygon: the PoS Bridge and the Plasma Bridge. Of the two, the PoS Bridge allows for faster deposits and withdrawals between the two chains and is most often used for transfers.
The PoS bridge takes around seven to eight minutes to deposit funds from Ethereum. Withdrawing funds to the Ethereum mainnet takes about an hour.
The Plasma Bridge is used specifically for MATIC withdrawals because it has enhanced security guarantees. But unlike the PoS bridge, the inner workings of the Plasma implementation can take up to a week for withdrawals to be made to the Ethereum mainnet.
This can lead to a bad user experience when a user wants to send MATIC to the Ethereum mainnet or deposit MATIC on a central exchange.
To long-term the problem of very long MATIC withdrawal periods, Hop Protocol has launched a new automated cross-chain market maker with liquidity pools made up of MATIC and hMATIC, a bridge asset attached to MATIC.
The protocol allows users to exchange MATIC 1: 1 with hMATIC tokens whenever they wish to make a deposit or withdrawal to and from Polygon.
The bridge will be able to send MATIC to Ethereum as well as other networks like xDai in five minutes instead of the seven days it takes with the Plasma Bridge.
According to the team, the Hop Bridge will also be cheaper to use, but the speed of transfers will depend on the liquidity of its pools. DeFi projects like Hop’s rely on significant cash flow to operate to their best standards.
To incentivize cash, the Polygon team awarded $ 400,000 in MATIC rewards to Hop cash providers. In the first reward phase, 1,000 MATIC tokens are available each day and can be earned by staking MATIC on Hop Protocol.
Besides the latest MATIC-specific solution, Hop also runs a cross-network solution for instant USDC transactions between Ethereum, MATIC, and xDai.
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