CoinVoice recently learned that Mikko Ohtamaa, co-founder of Trading Strategy, criticized Polygon for using user-bridged USDC deposits in funding markets (such as Morpho), arguing that this move poses multiple risks:

Destroy the illusion of self-custody: Although the Polygon bridge is controlled by a multi-signature wallet, this operation breaks the user's trust in self-custody. Attract regulatory attention: The flow of funds involving billions of dollars may attract high attention from regulators and the media. No user choice: Currently, users cannot choose whether to participate in the mechanism, which lacks transparency. Double counting problem: The bridged USDC is used for lending services on Polygon and in Morpho on the mainnet at the same time.

He suggested that Polygon explore more transparent ways, such as launching an independent bridge service, allowing users to choose to exchange USDC for "Polygon Yield USDC". In addition, he mentioned that Circle has launched a non-bridge version of USDC on Polygon, but it has not been widely adopted because it was launched late and is incompatible with the bridge version of USDC. [Original link]