The overarching gap between CeFi and DeFi is a growing cause of concern within the crypto industry. While the innovations in DeFi are steering the world towards a decentralized future, CeFi has offered an effortless user experience and interoperability to users at the cost of decentralization. This evident divide leaves users having to choose between the two wings of the crypto industry and miss out on the opportunities on the other. Â
Now, however, in a recent development, QuickSwap, the cardinal decentralized exchange on the Polygon network, and CelsiusX the decentralized arm of the Celsius Network have teamed up to close this gap. Through this partnership, they aim to create a bridge for smooth transitions between DeFi and CeFi and facilitate quicker adoption.Â
As such, CelsiusX is building the crucial infrastructure required for wrapping tokens to facilitate their easy movement across blockchain networks. This will enable native CeFi users to gain access to various DeFi opportunities like liquidity mining and staking, and enable DeFi users to benefit from the interoperability and scalability of CeFi platforms.Â
The CelsiusX bridge will first introduce the wrapped versions of ADA, DOGE, and ETH on the Polygon network with more assets to be added soon. Users will soon be able to transfer these assets from the Celsius Network to Polygon with no gas fees. But beyond just building this infrastructure, CelsiusX aims to facilitate adoption for this bridge and this is where the partnership with QuickSwap is crucial.Â
QuickSwap is the top DEX on the Polygon Network and brings in enormous trading volumes that accounted for $36 billion in 2021. Going by these metrics, QuickSwap is in a unique position to accelerate adoption of the CelsiusX bridge. QuickSwap and CelsiusX along with the Polygon Network have pledged a total of $10 million in rewards to early liquidity providers for the platform. The first three trading pairs to be incentivized are cxETH-ETH, cxADA-MATIC, and cxDOGE-MATIC, with CelsiusX providing $100 million in seed liquidity for these pairs.Â
Early liquidity providers will receive rewards in dQUICK tokens that can quickly compound to generate QUICK on QuickSwap’s Dragon Lair. CelsiusX and QuickSwap believe that this partnership is the first major step towards bridging the gap between DeFi and CeFi, rekindling the DeFi summer again.Â
The Layer-2 Advantage
In the past couple of years, decentralized exchanges (DEXs) have established themselves at the epicenter of the DeFi industry facilitating the transfer of assets within the ecosystem. However, popular layer-1 DEXs on Ethereum and Binance Smart Chain have long challenged users with problems like high gas fees and slow transactions, hindering DeFi’s adoption. In this situation, the emergence of Polygon Network as the ultimate scalability solution for Ethereum came as a welcome windfall for the industry. Using a layer-2 architecture, Polygon successfully solved the blockchain trilemma without compromising Ethereum’s existing ecosystem.Â
As a decentralized exchange on this robust network, QuickSwap benefits from its limitless scalability, security, and minimal costs. From its very inception, QuickSwap was able to provide the user-experience that was initially promised on DEXs, and with their new UI currently in alpha, QuickSwap continues to improve upon a quality user experience. The costs on the platform are as low as $0.00001 for transactions that could cost in excess of $40 on Uniswap, making it extremely affordable and accessible for new and veteran DeFi users. QuickSwap has garnered over 20,000 average daily users, and daily trading volumes average around $100 million, with over 5000 liquidity providers supporting the DEX.Â
This puts QuickSwap in a distinctive position for the partnership with CelsiusX. New users entering DeFi through the CelsiusX bridge will benefit from the same if not better user-experience as CeFi platforms. This will help quicken the pace of adoption and could be pivotal in bridging DeFi its next wave of users.Â
Bypassing Walled Gardens
In the years to come, CelsiusX aims to build long-lasting partnerships with Polygon and QuickSwap, creating wrapped versions and new use-cases for most digital assets. This will facilitate the smooth movement of all assets around the DeFi and CeFi ecosystems, bypassing the walled gardens of blockchain networks. As such, this new alliance could be the crucial step towards propelling mass adoption and getting more people in on the digital asset revolution.Â