PANews reported on December 16, according to The Block, that the Aave community received a proposal from contributor team Aave Chan to withdraw its lending services from the Polygon Proof of Stake (PoS) chain. This action is a response to another proposal from the Polygon community that plans to utilize over $1 billion in bridged assets for yield generation. Based on total locked value, Aave is the largest decentralized application on Polygon, with deposits on the PoS chain exceeding $466 million.
This proposal was written by Marc Zeller, the founder of Aave Chan, and aims to gradually phase out Aave's lending protocol to guard against potential security risks in the future. He requests adjustments to the risk parameters of Aave protocol versions 2 and 3 on the Polygon PoS chain to reduce the potential threats posed by the use of bridged stablecoins, and proposes that if Polygon's proposal is passed, corresponding measures should be taken to obtain returns. His proposal suggests strict measures to offset the potential risks of Aave's lending market on the Polygon PoS chain. These measures include setting a 0% loan-to-value (LTV) ratio for all assets and raising the reserve factor to 85%, effectively preventing further deposits or stopping users from borrowing against their collateral. Zeller wrote: "These adjustments are a response to an upcoming proposal that will have a significant impact on the risk status of bridged assets in the Polygon network."
Previously, the Polygon community released the "Polygon PoS Cross-Chain Liquidity Program" proposal, which aims to utilize over $1 billion in stablecoin reserves held on the PoS chain bridge to generate returns.
