TechFlow reported on December 13 that, according to The Block, Web3 risk provider Allez Labs has co-authored a Pre-Polygon Improvement Proposal with DeFi protocols Morpho and Yearn, seeking feedback from the Polygon community on deploying approximately $1.3 billion in stablecoin reserves (DAI, USDC, and USDT) currently held on the Polygon PoS bridge.
The proposal states that the idle $1.3 billion in stablecoin reserves represents an estimated annual opportunity cost of around $70 million. Its goal is to utilize these funds to incentivize additional activity within Polygon PoS and the broader AggLayer ecosystem.
The stablecoin reserves would be gradually deployed into ERC-4626 vaults tailored to each asset type. The DAI reserves are proposed to be deposited into Maker's sUSDS vault, while USDC and USDT will primarily generate yield through Morpho vaults. Under the proposal, Allez would manage the risk for these vaults.
The proposal will be discussed via community forums and Polygon’s dedicated protocol governance committee.
