Aave Co-founder Responds to Polygon Bridge Fund Investment Proposal Controversy: It is not anti-competitive behavior.

Aave co-founder Stani published his views on the Polygon Bridge Fund investment proposal on X: 1. The Polygon team (with the help of partners) proposed a proposal to take users' funds out of the Polygon bridge and invest them in DeFi without adequate risk protection. They selected partners in secret, and some said they got a huge token deal. 2. After reading the proposal, Polygon users are rightfully unhappy that their funds are being double-used, which is similar to partial banking. 3. Aave service providers (including risk providers) learned about the proposal. Given that 40% of Polygon TVL is deposited in Aave, Aave's main governance functions run on Polygon, and the existing security module provides insurance for markets on Polygon, the proposal has a significant impact on Aave's risk management. 4. ACI took action to discuss adjusting risk parameters to protect user funds (considering the post-traumatic stress disorder caused by the Harmony bridge hack). Other well-known contributors, such as Andre Cronje, expressed similar concerns in governance discussions. 5. The Polygon team abandoned their mission, quickly created a narrative that did not support the proposal, and blamed Aave’s leadership for the proposal’s failure. They also made several inaccurate claims about Aave’s infrastructure. For clarification: Aave’s infrastructure supports custom markets (Lido created one). Aave supports immutable governance if needed. Aave even allows governance with your own token under its friendly fork policy. If Polygon wanted more control over the investment strategy of the bridged assets, it could easily spawn a tailored market with the added guarantee of a large and efficient security module that other protocols do not have. Aave is a flexible lending infrastructure and capital efficient system designed to cater to different use cases. V4 will be a more exciting product. The main feedback from Polygon was that Polygon users were unhappy that the network was using their funds for high-risk investments without consent. The fact that Aave opened the discussion and took action to protect users is exactly what a DAO should do. Characterizing the Aave DAO proposal as anti-competitive behavior is inaccurate and diverts attention from the real issue: user safety. The risk of inheriting a third-party protocol without the DAO’s consent is not something that Aave DAO is interested in, and ACI takes the necessary steps to define the next steps in the evolution of the Polygon marketplace. ” Previously, the Aave community received a proposal from the contributor team Aave Chan to withdraw its lending services from Polygon's PoS chain. This is a response to another proposal from the Polygon community to use more than $1 billion in bridge assets to generate income. The proposal, written by Aave Chan founder Marc Zeller, aims to phase out Aave's lending protocol to protect the protocol from potential security risks in the future. He requested adjustments to the risk parameters of Aave protocol versions 2 and 3 on the Polygon PoS chain to reduce the potential threats of using bridged stablecoins and generate returns after Polygon's proposal is approved. His proposal suggests strict measures to offset the potential risks of the Aave lending market on the Polygon PoS chain. These measures include setting a 0% loan-to-value ratio for all assets and raising the reserve ratio to 85%, effectively preventing further deposits or preventing users from borrowing with collateral.