Originally published on: December 18, 2024
Stani Kulechov, the CEO and founder of Avara, recently voiced his support for a proposal to remove Polygon markets from the Aave platform. This decision came after an early-stage proposal from Allez Labs and Morpho to use stablecoins in Polygon’s proof-of-stake Portal bridge to generate yield.
Kulechov expressed concerns about the safety risks associated with this proposal, citing past incidents of bridge exploits that resulted in significant financial losses in the decentralized finance space. One such example was the $100 million Harmony Horizon bridge hack in June 2022.
In response to the proposal, Kulechov echoed a suggestion from Aave chain founder Marc Zeller to discourage Polygon users from using Aave and eventually cease support altogether. Zeller recommended adjusting the risk parameters of loans on Aave v2 and Aave v3 on the Polygon network to deter users from depositing funds into the lending protocol.
Polyon founder Sandeep Nailwal criticized Aave’s leadership on social media, calling the proposal “monopolistic.” Nailwal argued that the proposal from Allez and Morpho, which aimed to provide yield-bearing opportunities for stablecoins held in the Polygon bridge, was more decentralized and beneficial for the Polygon ecosystem.
Overall, the proposal to offboard Polygon markets from Aave has sparked discussions within the crypto community about the future of decentralized finance and the relationships between different blockchain platforms. Stay tuned for more updates on this evolving story.
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