Could the Polygon ecosystem disappear from the Aave DeFi protocol? 🤖🤖

Polygon, an Ethereum sidechain, and Aave, a leading DeFi protocol, are currently at the center of the debate on this very topic.

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In fact, Allez Labs has proposed using $1.3 billion of stablecoins currently frozen in the Polygon PoS bridge to generate yield. This proposal, while attractive on paper, has drawn strong reactions from a section of the Aave DAO, who fear that this strategy exposes its users’ funds to too much risk. 🔥

Polygon’s proposal aims to bolster the bridge’s reserves by deploying stablecoins DAI, USDC, and USDT in DeFi protocols like Morpho (Aave’s direct competitor) and Yearn. The goal is to generate a return on this money, estimated at around $ 70 million per year, in order to reinject this amount into the Polygon ecosystem in order to stimulate its growth.

We contacted Morpho, who informed us that the proposal was led by Allez Labs, and that the Morpho Association only evaluated the technical side of the question.🔥$AAVE