Aave Community Votes To Cease Lending On Polygon PoS Chain

According to Odaily, the Aave community has overwhelmingly voted to halt lending services on the Polygon PoS chain. This decision stems from opposition to a proposal made by Polygon in December of last year, which involved using over $1 billion in cross-chain stablecoins for yield generation. Aave's founder, Marc Zeller, recommended strict risk parameters to prevent further deposits or loans, citing concerns over the high-risk nature of Polygon's yield generation method, which could lead to bad debt issues. Aave is the largest decentralized application on Polygon, with a total value locked (TVL) exceeding $300 million. Polygon Labs CEO Marc Boiron expressed a preference for Aave to reconsider its decision to terminate the collaboration. However, the Aave DAO has approved a proposal to adjust the stablecoin loan-to-value (LTV) ratio to 0%, effectively blocking users from borrowing. The vote saw over 690,000 in favor of leaving Polygon, with approximately 117,000 opposing the move.