PANews reported on December 18 that, according to The Block, Polygon community members rejected a preliminary proposal that suggested deploying over $1 billion in stablecoin reserves to generate returns. The proposal was put forward by Web3 risk provider Allez Labs in collaboration with DeFi protocols Morpho and Yearn, aiming to leverage around $1.3 billion in DAI, USDC, and USDT reserves in the PoS Chain bridge to generate profit.
Community members express concern about the lack of a mechanism for affected users to opt-in to safety issues and doubt the feasibility of the proposal. Given the community's reservations, the proposal seems unlikely to pass, but this does not prevent Polygon from exploring innovative or even bold ideas in the future.
Polygon also responded to Aave Chan's proposal, stating that the reaction from Aave's leadership was 'disappointing.' They claimed that Aave Chan's use of threats was due to their main competitor, Morpho, starting to gain attention. Aave founder Stani Kulechov also commented on the controversy surrounding the Polygon cross-chain fund investment proposal. He criticized the proposal for lacking sufficient risk protection, emphasized Aave's role in the Polygon network, and pointed out that 40% of the total value locked in Polygon is deposited in Aave, with Aave's main governance functions operating on Polygon.
