According to ChainCatcher news reported by The Block, Web3 risk provider Allez Labs, in collaboration with DeFi protocols Morpho and Yearn, has drafted a Pre-Polygon Improvement Proposal seeking input from the Polygon community on deploying approximately $1.3 billion in stablecoin reserves (DAI, USDC, and USDT) from the Polygon PoS bridge.
The proposal claims that due to $1.3 billion in stablecoin reserves being idle, these funds represent an opportunity cost of about $70 million per year. Its aim is to utilize these funds to incentivize additional activity in Polygon PoS and the broader AggLayer.
The stablecoin reserves will gradually be deployed into ERC-4626 vaults targeting each type of asset. The DAI reserves are proposed to be stored in Maker's sUSDS vault, while USDC and USDT will utilize the Morpho vault as the primary source of yield. According to the proposal, these vaults will be risk-managed by Allez.
The proposal will be discussed through community forums and the dedicated governance committee for Polygon.
