Polygon, an Ethereum layer 2 aggregator, has announced a liquidating mining incentive to help Augur, a predictions platform, get off the ground.
According to the September 30 announcement, the Augur-Matic Rewards million-dollar yield farming program is intended to increase liquidity on Augur Turbo.
Augur is a decentralized prediction platform that offers daily betting markets on sports, cryptocurrency, politics, and current events. Its popularity skyrocketed during the US presidential elections and the Tokyo Olympics.
Augur Turbo employs an automated market maker to provide liquidity on all sides of the bet and to generate dynamic odds. Polygon will provide yield farming opportunities to increase liquidity.
Augur Turbo is an advanced version of the existing Ethereum-based predictions platform that runs on Polygon and uses Chainlink oracles. The platform, which began beta testing on Polygon three months ago, now offers daily markets for popular US sports such as the NFL, NBA, and MMA.
Polygon’s advantage is its high-throughput and low-cost layer 2 transaction processing. Augur’s Director of Operations, Tom Kysar, confirmed:
“To cut a long story short, Augur v2 (on Ethereum) had numerous issues with the cost of using it, gas prices, and transaction times. Augur Turbo on Polygon eliminates these issues, making it nearly free to execute trades and perform other actions.”
The announcement did not provide any additional information on the liquidity mining incentives, but they are expected to include both platforms’ native tokens, MATIC and REP.
This year, polygon total value locked has increased as users try to avoid Ethereum layer 1 and those shocking gas prices. Polygon TVL is worth $3 billion, up 2,400% in the last six months, according to DappRadar. Its active daily addresses briefly surpassed Ethereum’s this week.
MATIC and REP tokens have been updated.
Despite all of the partnerships and onboarding, Polygon’s native token, which is still known as MATIC, has not seen much activity in recent weeks. It is now trading at $1.24, up 12% in the last 24 hours.
MATIC is still down from its all-time high of $2.62 set on May 18, and with 6.6 billion tokens in circulation, it has a market cap of $7.6 billion.
Augur’s REP token has gained 13 percent in the last 24 hours as a result of the news. According to CoinGecko, REP is currently trading just under $22. It has also been falling over the last two weeks and is now down 90% from its all-time high of $342 in February 2016.