TechFlow news, February 26 — According to The Block, the Aave community has approved a proposal to effectively suspend lending services on the Polygon PoS chain by significantly tightening risk parameters. Currently, Aave is the largest decentralized application on Polygon, with over $300 million in deposits on the PoS chain.
The move comes primarily in response to negative reactions toward Polygon's December proposal to allocate over $1 billion in bridged stablecoins for yield-generating strategies. Aave founder Marc Zeller proposed imposing strict risk parameters on Aave v2 and v3 deployments on Polygon PoS, aiming to halt further deposits and prevent users from borrowing against collateral.
Zeller argued that Polygon’s yield-generation approach carries significantly higher risks compared to other chains, such as depositing ETH into liquid staking protocols or placing DAI into MakerDAO’s Savings Rate module. As of 12:03 p.m. Eastern Time, over 692,000 votes supported exiting Polygon, with approximately 117,000 votes opposed.
