Hop Protocol announced last Tuesday, August 10, through its Twitter account, that users can now withdraw $MATIC instantly from Polygon to Ethereum or xDai Chain, instead of having to wait 7 days. According to the company, this is a first for $MATIC and a litmus test for Hop to assess the demand for fast exits.
“We are delighted to announce that Hop now supports instant withdrawals of $MATIC from Polygon to Ethereum and other supported scaling solutions”, he said via an article posted on the Medium platform.
In his view, while the native Polygon bridge has seen considerable improvements in recent months, reducing withdrawal times from an average of 3 hours to just 1 hour, one asset has been largely unaffected by these updates: $MATIC.
“Today, there are mainly two bridges to move assets between Ethereum and Polygon. The first is the Proof of Stake (PoS) bridge and the second is the so-called Plasma bridge. If you’ve ever deposited or withdrawn a token like USDC or ETH to or from Polygon, you’ve likely used the PoS bridge”, he added.
On the other hand, the company explained that the Plasma bridge is used for withdrawals of $MATIC. It provides greater security guarantees, but it also comes with longer withdrawal times of up to 7 days, which has been a big problem for Polygon users who want to withdraw their $MATIC to a centralized exchange, for example.
Change your $MATIC from Polygon to Ethereum in minutes
According to the company, Hop is the first bridge protocol to unlock instant withdrawals of $MATIC. As such, we are eager to monitor how transfer volumes will compare to Hop-supported assets thus far, where cost and time savings from using Hop over the native Polygon bridge were most negligible.
In addition, he indicated that $MATIC withdrawals with Hop will take 4 to 5 minutes versus 7 days and gasoline costs will amount to pennies, as costs are socialized among many Hop users. In most cases, depending on the liquidity, it will not only be faster but also cheaper to use the Hop bridge.
Notably, the Polygon team is awarding $400,000 in $MATIC rewards to Hop’s liquidity providers in the $hMATIC – $MATIC AMM over the next year to help us attract and maintain deep liquidity. In other words, liquidity providers will earn trading fees for each $MATIC transfer via Hop and $MATIC liquidity withdrawal rewards on top. The first tranche of rewards will last 1 month and will distribute $30,000 MATIC to LPs.