CompliFi is Moving to Polygon!
This post is for general information purposes only. It does not constitute investment advice or a recommendation or solicitation to buy or sell any investment, or to issue or trade derivatives, and should not be used in the evaluation of the merits of any financial or investment decision.
Addressing the Issue of High Transaction Costs
Decentralised derivatives require a lot of maths to be done on chain. As we explore increasingly sophisticated risk structures, the need for cheap decentralised computation is becoming ever more urgent. With Ethereum gas prices where they are, even the relatively simple derivatives currently featured on CompliFi impose exorbitant transaction costs on users. Luckily, after years in development, scaling solutions are finally here.
Starting from the next derivative series, all new CompliFi instruments will be deployed on Polygon (formerly Matic) PoS sidechain. This solution already supports over $7bn in assets and features all the critical pieces of DeFi infrastructure required to support CompliFi.
So what does that mean for transaction costs? Simply put, during our testing on Polygon mainnet, we are yet to encounter a transaction that cost us more than $0.01.
How This Will Work
- CompliFi’s next derivative series, launching on May 31, will be deployed on Polygon only.
- At the same time, an updated CompliFi app will be released, enabling users to switch between Ethereum and Polygon networks.
- In order to trade or add liquidity to the new derivative pools, all you have to do is move your USDC over to Polygon using https://wallet.matic.network/bridge/
- Current derivative series will function without changes, and COMFI rewards earned as part of the liquidity mining program can be claimed as before. Once CompliFi app is updated to support multiple networks, please make sure you set you network to “Ethereum” when working these assets.
As ever, please remember that decentralised derivatives are an early experimental product. Even if you have a solid fundamental understanding of financial engineering (which you absolutely should have to even consider committing capital to such instruments), you may still lose money for any number of reasons. As a rule of thumb, please assume that you will lose all of the capital you put in.
