Polygon Miden Launches $35 Million Grant Initiative to Drive Innovation

• Composability Labs is developing Spark, an on-chain CLOB that improves DeFi trading on Polygon Miden by minimizing state storage.

• Polygon Miden uses zero-knowledge proofs to reduce state bloat, ensuring efficient and scalable blockchain operations.

Polygon Technology, in a recent blog, said Composability Labs is advancing the decentralized finance (DeFi) space with Spark, a high-speed on-chain central limit order book (CLOB) that leverages the state minimization capabilities of Polygon (MATIC) Miden. By integrating state minimization and zero-knowledge (ZK) proofs, Polygon Miden enables developers to build scalable, efficient, and secure solutions that extend the feature set of Ethereum.

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State bloat is a well-known challenge in blockchain technology. The increased use of a blockchain leads to accumulation of additional states, slow down the network and increase transaction fees. Polygon Miden solves this problem by implementing a state minimization process that reduces the need for large data storage.

Polygon Miden’s zkEVM rollup technology enables block creation and authentication without storing the entire state. Zero-knowledge (ZK) proofs allow users to store data, with the rollup keeping track of verifiable commitments. When a user’s state changes, a ZK proof validates the transformation, ensuring efficient and scalable blockchain operations.

Spark, developed by Composability Labs, leverages Polygon Miden’s state minimization capabilities to create a highly efficient on-chain CLOB. Designed for spot and perpetual swaps, Spark leverages Polygon Miden’s unique account and note architecture to improve swap efficiency and transparency.

Key Benefits of Spark

• On-chain execution: Ensures greater transparency and security compared to off-chain solutions.
• Advanced Order Types: Supports a wide range of order types and provides a transparent view of market depth and liquidity.
• Improved Trading Efficiency: Reduces critical implementation issues in DeFi, improving the overall trading experience.

Spark’s on-chain execution model mitigates the tradeoffs associated with off-chain order books, such as reduced transparency and potential security risks. By integrating standard practices for trading strategies and algorithms, Spark supports efficient and effective trading operations.

Composability Labs advances decentralized finance by implementing on-chain execution and creating performant order book-based protocols. Polygon Miden’s features, such as account abstraction and local asset storage, improve the user experience by ensuring efficiency and security. Each account in Polygon Miden is represented by a smart contract, making potential exploits more difficult as each account must be targeted individually.

Polygon Miden’s minimal state design enables local execution of on-chain CLOBs like Spark. Additional features, such as an on-chain price oracle for perpetual markets, are under development. These innovations aims to improve the efficiency, autonomy and scalability of DeFi markets.

Improving Ethereum’s DeFi Landscape

Polygon Miden combines elements of Bitcoin and Ethereum, providing a unique blockchain experience. It takes the concept of Bitcoin UTXOs (unspent transaction outputs) and enhances them with customizable logic, known as Notes. These Notes function like cryptographic bank checks with logic attached, allowing for conditional transactions.

Polygon Miden also advances the concept of programmable smart contracts Ethereum by enabling client-side proof of transactions. Users execute transactions locally and submit ZK proofs to rollup, preserving transaction privacy while improving performance. This approach allows Polygon Miden to process transactions in parallel, significantly improving transaction throughput.

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