Aave could leave Polygon over plan to use bridge funds for yield farming
Aave governance delegate Marc Zeller has aired concerns over the future of the decentralized finance (DeFi) lending platform on Polygon in the wake of a controversial proposal to use funds locked in the network’s bridge to earn yield elsewhere. Aave is the largest protocol on Polygon, accounting for over a third of the chain’s total value locked (TVL) at $467 million, according to data from DeFiLlama. Operation polygon(e) pic.twitter.com/soiN4vBwZ2 — Marc “Billy” Zeller (@lemiscate) December 16, 2024 Read more: Advisors leave Aave as protocol punishes competitors The proposal to create a “Polygon PoS Bridge Liquidity Program” is currently in pre-PIP status and, in the four days since publication, has generated discussion between concerned and yield-hungry users alike. While some point to the potential boon to the ecosystem of the program’s profits being “strategically deployed… to incentivize liquidity and stimulate project growth,” others rais...