Polygon Adds Drip Protocol to its Ecosystem, Raises $450 Million

Layer 2 network, Polygon now has a new dApp on its ecosystem after Drips protocol deployed on it. The Ethereum-based tokenized subscription protocol went live on the Ethereum mainnet in February. 

Drips Protocol Deploys on Polygon

While Polygon started as a layer two solution to Ethereum scalability issues, it has gradually become an independent network on its own. 

With over 7000 dApps on it, Drips protocol will access a massive ecosystem. The low transaction fees and Proof of Stake consensus model would also benefit the protocol.

Drips protocols is a unique payments platform that solves the challenge of making recurring payments on the blockchain. It can be used to generate recurring income with non-fungible token memberships and subscriptions. 

Users can collect funds from multiple sources with just one transaction and stream funds in schedules to another user.

The protocol has several use cases, with DAOs presenting the most viable option at the moment. Since it launched on Ethereum, several teams behind projects such as Gnosis Safe, Snapshot, Gitcoin, Giveth, Ethersjs, WalletConnect, and Solidity have adopted it.

Polygon Raises $450 Million

Beyond Drips deploying on Polygon, the network had a $450 million fundraising led by Sequoia Capital India. 

The investment round involved a private sale of Polygon’s native token, MATIC, to the investors. Other notable investors include SoftBank Vision Fund 2, Tiger Global, Galaxy Digital, and Kevin O’Leary.

The network plans to use the funding to further improve its scaling solutions and encourage mainstream adoption of Web3. 

Last year, it spent over $1 billion to strengthen its technology, and it doesn’t look like it’s stopping anytime soon. Moreover, with the increasing interest in Web3, it’s positioning itself as the platform of choice for Web3 initiatives.

Polygon recent moves have had significant effects on the price of its native token, MATIC. In the past 24 hours, MATIC has risen by 20% and is now worth $2.05. Recent positive developments on Polygon are the primary catalyst for the rise.