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Aave wants to break away from Polygon, while... Lido already has it.
Four days ago he ruled an offer Introduced the possibility of plugging $1.3 billion worth of dormant stablecoins on the Polygon PoS bridge towards Aave's lending competitor Morpho. The stablecoins will then be reclassified into protocols such as Sky, Angle, and Robert Leshner's Superstate.
this “Explosion-like” strategy. It will unlock an estimated $70 million in annual revenue from “ecosystem incentives” that Polygon is currently leaving on the curb.
I say like Blast because unlike Blast L2, Polygon users will have to trust the bridge, plus they won't benefit from any production bonuses (at least not directly).
In response, Aave-chan Initiative (ACI) founder Mark Zeller seven hours ago published a rather aggressive article Governance proposal Seeking to adjust the loan-to-value (LTV) risk criteria for all assets at Aave Polygon to 0%.
Reason for separation? Zeller cites the reasons for the risks associated with “bridge vulnerabilities,” citing a list of historical bridge breaches such as: Ronin, BNP Bridge, wormhole And more.
Zeller's proposal would also adjust the reserve factor for all Aave assets to 85% to discourage deposits, canceling the upcoming reduction. umbrella Deploy the security module, migrate Aave v3 governance to another L2 chain, and freeze all its reserves in Polygon.
Above all, the proposal seeks to create a common incentive program with other L2 chains, making it attractive for Aave users on Polygon to migrate liquidity elsewhere (perhaps Avalanche Series C?).
Suffice it to say that this would in effect eliminate Aave's presence on Polygon, which is currently the top protocol for TVL ($662 million) on the side chain.
From Aave's perspective, Polygon's revenue is pocket change. On a month-to-date basis, Polygon's revenue to Aave is a modest amount 3.8% ($305 thousand) of its total revenues.
The million dollar question here is: how will Aave He responded Has Polygon chosen to deploy its USDC-pegged stablecoins on Aave?
“Only the Polygon community has put forward a pre-initial proposal (PIP) at this point, and the topic is still in the very early stages of discussion,” a Polygon spokesperson told Blockworks. “Getting feedback from all stakeholders is essential, and we encourage continued conversation to ensure these proposals are fully discussed and evaluated.”
Updated December 16, 2024 at 3:10 PM ET: Added a statement from Polygon.
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