We're excited to unveil the next big step for Polynomial as we go beyond our platform to improve the derivatives trading space significantly. Introducing Polynomial Chain, the only Ethereum Layer 2 with a native liquidity layer designed for hyper-scaling derivatives.

Why Polynomial chain?

One pivotal statistic drove our decision:

“There are 10 times more dApps now competing for $225 billion in total locked value compared to $300 billion in 2021. Centralized exchanges still dominate with $9 trillion in quarterly trading volume. Despite new technology, on-chain trading is still struggling due to a lack of liquidity.”

At the core of Polynomial Chain is a novel approach to Rollup Abstraction with liquidity as a core primitive. Our goal is simple yet ambitious: to provide an unparalleled experience for both users and protocols, with best-in-class user experience (UX) and liquidity, all while staying on-chain. This has been our dream for a long time, and now it’s becoming a reality.

The Evolution of the Ethereum Ecosystem

Over the years, the Ethereum ecosystem has made significant strides:

• Rollups: Reduced transaction costs

• Account Abstraction (AA): Enhanced UX with batching

• Chain Abstraction: Facilitated liquidity movement across chains

• Intents: Merged off-chain and on-chain liquidity

Despite these advancements, a new generation of on-chain derivative users has not emerged. Centralized Exchanges still command 99% of trading volume. Why is that?

We believe this is because the base layer technology is siloed, causing developers to lose focus on bringing liquidity and order flow. To solve this problem, we are introducing a unification layer that combines all these aspects. It is a fully integrated blockchain that provides AA, liquidity, and more, addressing 90% of user and developer challenges.

On top of all this, Polynomial uses a new method to balance staking and align rewards between governance and liquidity. In this method, users who add liquidity on-chain receive governance token rewards, instead of governance alone.

Now, all these were not built overnight. We made these for ourselves while building the Perp DEX. But in true crypto-native fashion, we want to make it public and invite everyone to build using a stack that makes financial engineering easier. ‘Trade’ is our flagship application, serving as an example of how we envision apps being built in the future.

From day one, Polynomial Chain comes with account abstraction, chain abstraction, and a liquidity layer for sharing Dapp liquidity across multiple protocols such as trading perps and prediction markets.

Here are some protocols that we invite everyone to build:

• Predictions markets

• Options markets

• Structured products

• Basis trading

We are part of the super chain; combining the liquidity of base, mode, etc., to be the liquidity hub for trading derivatives.

Polynomial retroactive Points

This initiative aims to acknowledge and incentivize early adopters and contributors, enhancing their loyalty and fostering deeper engagement within Polynomial's ecosystem. By rewarding past participation, Polynomial strengthens its community and promotes continued involvement in its innovative projects and services.

Polynomial is rewarding Retroactive Points to its core believers, DeFi users, ecosystem partners, and NFT communities. These points are granted retroactively to users who have supported and engaged with Polynomial's platform. To receive the Retroactive Points, users must complete the required deposit process.

Check here 👇

Here is the breakdown of retroactive Points

Polynomial Earn Users: Earn vaults are Polynomial's ifirst product to go live. Depositors who have deposited a minimum of $101 into V1 or V2 are eligible for retroactive points.

Polynomial Trade Users: Anyone who has completed at least one trade on Polynomial, either on Optimism or the base network, is eligible for the retroactive points.

Mystery orbs tiers: Mystery orbs were airdropped to loyal traders on Polynomial Trade on the Optimism network in early January, distributed across three tiers based on specific criteria:

• Tier 1- 2 points.

• Tier 2- 5 points.

• Tier 3- 7 points or more

Each tier corresponds to distinct criteria, each worth 1 point. and the criteria are

• did more than 5 trades

• did more than 25 trades

• got liquidated more than 3 times

• got liquidated more than 10 times

• traded more than 10k volume

• traded more than 100k volume

• traded more than 1m volume

• traded more than 10m volume

• did more than 5 limit orders

• did more than 25 limit orders

Synthetix stakers: Stakers of $SNX, the native token of Synthetix Network, SNX has a debt of $1000 or more are eligible for this criteria. The snapshot was taken on June 26, 2024.

Pyth stakers: Stakers of $PYTH, the native token of Pyth Network, who have staked a minimum of 5000 PYTH tokens, are eligible under these criteria. The snapshot was taken on June 26, 2024.

InstaDapp/Fluid users: Top 500 users of InstaDapp/fluid are eligible for this criteria.

sDAI holders: Top 500 Holders of sDAI are eligible for this criteria. The snapshot was taken on June 26, 2024.

Ethena USDe: Top 500 holders of Ethena USDe are eligible for this criteria. The snapshot was taken on June 26, 2024.

NFT communities: The holders of Pudgy penguins, lil penguins, milady, Redacted Remilio Babies, schezio posters, and Cryptotesters are eligible for this criteria. The snapshot was taken on June 26, 2024.

Nothing form: Those who submitted their address via the Nothing form released on Polynomial's official Twitter.

The Future of Derivatives Trading

Polynomial Chain represents a significant leap forward in the DeFi space, particularly for derivatives trading. By addressing the critical liquidity gap and providing a unified, efficient platform, we're paving the way for a new era of decentralized finance.

Join us in reshaping the future of derivatives trading. Together, we can bridge the gap between DeFi's potential and CEX dominance, creating a more accessible, efficient, and liquid ecosystem for all.

Stay tuned for more updates as we continue to develop and expand the Polynomial Chain ecosystem. The future of derivatives trading is here, and it's decentralized.