The Aave community is discussing withdrawing from Polygon’s PoS chain after a proposal to deploy $1.3B in bridged stablecoins for yield generation. Marc Zeller of Aave Chan raised security concerns about potential risks from rehypothecating user deposits.
Proposed Adjustments
Zeller’s proposal suggests strict risk measures, including setting a 0% loan-to-value ratio and increasing reserve factors to discourage borrowing. Aave currently has $466M in deposits on Polygon.Polygon’s Yield Strategy
Polygon’s proposal aims to deploy reserves for earning returns but has faced criticism for exposing assets to higher risks compared to safer strategies like ETH staking.What’s Next?
Zeller’s recommendations are under community review, with potential changes moving to a vote. Meanwhile, Polygon Labs emphasized prioritizing ecosystem security as discussions continue.
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