The Aave community is deliberating the potential cessation of operations on the Polygon network due to rising concerns about the risk of bridged assets.
Aave's Concerns on Polygon
On December 13, Aave founder Marc Zeller proposed revising risk parameters for Aave v2 and v3 on Polygon. This response is due to a proposition on using stablecoin reserves elsewhere.
Governance Proposal for Exit
The proposal suggests setting a 0% LTV to reduce liquidation risks and freezing particular assets. Users' interactions with tokens like USDC.e and wETH would be affected, drawing attention to bridge vulnerabilities.
Community Reaction and Implications
The initiative has sparked discussions in the Aave community, while the exit proposal backed by Allez Labs and others raises yield and risk debates. Users express concern over the safety of their holdings on bridges.
The exit proposal from Polygon highlights the importance of risk management in the DeFi space. Significant parameter changes could impact users and investment strategies.
