IoTeX collaborates with Polygon Labs to integrate with AggLayer for cross-chain DePIN liquidity

Decentralized physical infrastructure network IoTeX is collaborating with Polygon Labs to integrate its IoTex 2.0 blockchain with AggLayer.

The announcement was made by Raullen Chai, CEO and co-founder of IoTeX, and Sandeep Nailwal, co-founder of Polygon, at the R3al World event in Singapore on Tuesday.

The move is designed to tap into AggLayer’s cross-chain communication and liquidity sharing, enabling IoTeX-based projects to distribute rewards and allow users to settle on the chain of their choice, according to a statement shared with The Block.

“This integration not only enhances cross-chain capabilities and unlocks unprecedented liquidity and scaling opportunities through the AggLayer for DePIN projects,” Nailwal said. “By providing a purpose-built platform that seamlessly connects with different ecosystems, these projects are able to thrive in a multi-chain world.”

The AggLayer is an interoperability layer currently under development by Polygon Labs and other core contributors, designed to facilitate unified liquidity and security across a network of chains. It uses ZK proofs to ensure that if one chain experiences a failure, it does not impact the funds or operations of others.

ZK proofs allow one party to prove to another that a statement is true without revealing the underlying data, enhancing privacy and security in blockchain systems.

IoTeX launched a white paper for IoTeX 2.0 in July — a tech stack with composable modules and a unified trust layer designed to boost DePIN adoption, supported by a token economy linking DePIN dapps, Layer 2 chains and devices. 

“Our infrastructure will enable any DePIN developer to connect seamlessly with the AggLayer, allowing users to interact with DePIN applications across multiple blockchains,” Chai said.

AggLayer’s growing connections

Polygon Labs introduced the blockchain aggregation layer in January, aiming to connect chains to support unified liquidity.

Multiple projects, such as OKX’s X Layer, Immutable, Astar, Canto, Palm Network, Aavegotchi, IDEX, Nubank and Manta Network, are also using or plan to use the Polygon CDK to develop their Layer 2 networks and connect to the AggLayer, alongside Polygon’s own PoS chain.

In July, Movement became the first Move-based network to join AggLayer, aiming to help bridge the gap between the Move and EVM ecosystems.

Last week, crypto hardware manufacturer Fabric Cryptography also announced a collaboration with Polygon Labs to bring its custom ZK chips to the AggLayer ecosystem.

Several Polygon-related projects have also utilized IoTeX’s infrastructure, including the geospatial data network Geodnet and vehicle data monetization platform Dimo.