fyi you can get around half these returns on aave on ethereum mainnet without having to mess with matic at all.
while i don’t think the matic team is untrustworthy, it’s worth pointing out their entire network is currently secured by an upgradeable multisig wallet.
there is also a ~1 week period to move back from matic to ethereum mainnet which can be irksome if you e.g. want to sell quickly back to fiat via some centralized exchange.
The problem with doing it on the Ethereum network is gas fees. Even with super low gas fees (~$3), this strategy would cost over$100 to implement.
I agree that doing this on Polygon / Matic is not ideal, as it is a sidechain / quasi L2 solution that sacrifices decentralization for speed and cost, but for illustration purposes, it works.
It takes ~40 mins to bridge Ethereum from the Matic network to the Ethereum mainnet,
fyi you can get around half these returns on aave on ethereum mainnet without having to mess with matic at all.
while i don’t think the matic team is untrustworthy, it’s worth pointing out their entire network is currently secured by an upgradeable multisig wallet.
there is also a ~1 week period to move back from matic to ethereum mainnet which can be irksome if you e.g. want to sell quickly back to fiat via some centralized exchange.
The problem with doing it on the Ethereum network is gas fees. Even with super low gas fees (~$3), this strategy would cost over$100 to implement.
I agree that doing this on Polygon / Matic is not ideal, as it is a sidechain / quasi L2 solution that sacrifices decentralization for speed and cost, but for illustration purposes, it works.
It takes ~40 mins to bridge Ethereum from the Matic network to the Ethereum mainnet,
ah yes, the proof of stake bridge is faster.
i guess it depends if you’re running this strategy with size. e.g. for over $100,000, 10% returns means you’d earn back gas fees in ~3 days.