Polygon AggLayer expands cross-chain liquidity as Agora adopts AUSD
Polygon AggLayer expands cross-chain liquidity as Agora adopts AUSD
Polygon’s AggLayer has adopted Agora’s AUSD stablecoin as its native currency, streamlining cross-chain transactions and liquidity management without requiring token bridges. The partnership with Agora, a stablecoin provider backed by institutions like State Street and VanEck, introduces a fiat-backed asset designed to enable multichain activity while simplifying user and developer experience across Web3. By integrating AUSD, AggLayer users and developers gain access to stable, fiat-backed liquidity, reducing transaction costs and technical barriers.
Enhancing liquidity and efficiency
With AUSD as the default currency, AggLayer optimizes liquidity across connected chains, eliminating extra bridging fees and enabling smoother asset movement. This functionality is especially beneficial to businesses and developers on AggLayer, allowing participants to earn directly from the stablecoin's use without needing new infrastructure or updates. The design aims to empower smaller networks and create a fairer, decentralized economic ecosystem where income flows back to the Web3 community rather than to centralized issuers.
Further enhancing AggLayer’s functionality, Polygon Labs partnered with Fabric Cryptography to integrate zero-knowledge proofs, a significant upgrade expected to bolster security and reduce operating costs. This development, leveraging Fabric’s Verifiable Processing Units, accelerates AggLayer’s usability and could fast-track broader Web3 adoption. Polygon co-founder Mihailo Bjelic highlighted that this leap in tech could reduce multi-year projects to completion timelines as short as six months.
Additionally, Magic Labs and Polygon are addressing DeFi fragmentation by launching the Newton testnet
