Aave contributors propose Aave's exit from the Polygon PoS chain due to Polygon's "high-risk" bridge proposal

PANews December 16th news, according to The Block report, the Aave community has received a proposal from the contributor team Aave Chan to withdraw its lending service from Polygon's Proof of Stake (PoS) on-chain. This action is in response to another proposal from the Polygon community that plans to use bridge assets of over $1 billion for yield generation. Aave is the largest Decentralization application on Polygon in terms of locked total value, with more than $466 million in deposits PoS on-chain. The proposal, authored by Aave Chan founder Marc Zeller, aims to gradually phase out Aave's lending protocol to prevent potential security risks in the future. He requests adjustments to the risk parameters of the Polygon PoS on-chain Aave protocol versions 2 and 3 to mitigate potential threats from using bridge stablecoins, and proposes measures to obtain rewards if the Polygon proposal is approved. His proposal suggests strict measures to mitigate potential risks for Aave in the Polygon PoS on-chain lending market. These measures include setting a 0% loan-to-value ratio (LTV) for all assets and increasing the reserve factor to 85%, effectively preventing further deposits or borrowing against their collateral. Zeller wrote, "These adjustments are in response to an upcoming proposal that will have a significant impact on the risk profile of bridge assets in the Polygon network." Earlier, the Polygon community proposed the 'Polygon PoS Cross-chain Liquidity Program', which proposes to generate revenue using the stablecoin reserves of over $1 billion held on the PoS chain bridge.