particle for direct object ghost The community is evaluating a proposal to cancel the lending protocol polygon Chain of Proof of Stake (PoS).
On December 16 offerAave Chan founder Mark Zeller highlighted the potential risks associated with Polygon's plans to redefine its stablecoin reserves, while suggesting that Aave should adjust the risk parameters for its V2 and V3 deployments. Ethereum Layer 2 of the blockchain and finally get off the grid completely.
Zeller argued that the move would protect Aave from vulnerabilities associated with bridged stablecoins and reduce long-term security threats.
Aave is Polygon's largest decentralized application (dApp), having raised $468 million, which is about 40% of the total $1.3 billion value of the Ethereum Layer 2 (TVL) network. However, the proposed withdrawal would affect only 2% of Aave's overall TVL and 1.5% of its fee income.
Why AAVE Is Considering Polygon's Exit
The move follows a controversial pay-as-you-go proposal on the Polygon network that has raised security concerns.
Earlier this month, the Polygon community a offer To deploy stablecoin reserves DAI, USDCand USDT From the Polygon PoS portal bridge to monitored liquidity pools.
The authors argued that this strategy could yield up to $70 million and create new ecosystem incentives to grow Polygon's DeFi landscape.
However, Zeller has drawn significant risks associated with this approach, drawing parallels to past bridge-related security breaches such as the Ronin and BNB Bridge hacks, which caused huge losses for users.
He criticized Polygon's proposal as riskier than alternatives such as Ethereum Liquid Staking or Ethereum MakerDAO's DAI savings module.
ACI's founder also questioned the logic of risking billions in potential bad debt for what he sees as negligible revenue. He stated:
Polygon is 1.5% of Aave DAO revenue. In what world do we get a billion in bad debt for this?”
Community reaction
The crypto community has largely supported Aave's cautious approach to protecting its users' funds.
Crypto investor Adam Cochran It noted that bridges already carry significant risks, and adding equity mechanisms for chain profits only exacerbates the risk. He called Polygon's move a miscalculation.
he expressed:
Good discussion from Aave. Bridges are dangerous enough now. Introducing asset recovery just so a chain can make a profit does nothing for users or projects.
Meanwhile, Gabriel Shapiro, legal analyst is highlighted How Aave's response demonstrates the impact that decentralized applications can have in shaping governance decisions. He predicted that Aave's assertive stance could prevent Polygon's yield proposal and set a precedent for prioritizing responsible actions in DeFi.
