Close Menu
Cryprovideos
    What's Hot

    Ethereum Able to Explode? Right here’s Why ETH May Be the Subsequent Huge Breakout! – BlockNews

    September 7, 2025

    Bitcoin vs. USD: What’s the Actual Distinction?

    September 7, 2025

    TOKEN6900 Worth Prediction: Will the Publish-Presale Dip Spark a 100% Rally?

    September 7, 2025
    Facebook X (Twitter) Instagram
    Cryprovideos
    • Home
    • Crypto News
    • Bitcoin
    • Altcoins
    • Markets
    Cryprovideos
    Home»Crypto News»Polygon rejects proposal to bridge funds into Morpho to drive DeFi progress
    Polygon rejects proposal to bridge funds into Morpho to drive DeFi progress
    Crypto News

    Polygon rejects proposal to bridge funds into Morpho to drive DeFi progress

    By Crypto EditorDecember 19, 2024No Comments2 Mins Read
    Share
    Facebook Twitter LinkedIn Pinterest Email


    Polygon rejects proposal to bridge funds into Morpho to drive DeFi progressPolygon rejects proposal to bridge funds into Morpho to drive DeFi progress

    The Polygon group has determined in opposition to a proposal to deploy $1.3 billion in stablecoins from its Proof of Stake (PoS) bridge into yield-generating packages on Morpho, an Ethereum-based DeFi platform.

    The announcement, made on Dec. 17 by way of Polygon’s official social media account, highlighted issues raised by customers relating to the dearth of a consent mechanism and potential dangers to the community.

    Polygon said:

    “Given the group’s concern across the pre-PIP, it appears unlikely for this proposal to progress. Nevertheless, it doesn’t imply progressive and even aggressive concepts shouldn’t be explored sooner or later.”

    Safety and ecosystem dangers

    The proposal, often called a preliminary proposal (pre-PIP), sought to make the most of stablecoin reserves presently held in Polygon’s PoS bridge to incentivize liquidity and drive progress within the platform’s DeFi ecosystem.

    Backed by Allez Labs, Morpho Affiliation, and Yearn, the proposal claimed these idle funds may generate an estimated $70 million yearly by being deployed into Morpho’s liquidity swimming pools.

    Nevertheless, critics of the proposal cited important dangers to the steadiness of Polygon’s ecosystem. Former Polygon worker Pranav Maheshwari outlined issues concerning the potential fallout of deploying bridge belongings into high-risk protocols.

    He famous that vulnerabilities within the underlying techniques, resembling hacks or monetary instability, may jeopardize the worth of belongings secured by Polygon’s bridge.

    Maheshwari wrote in a social media submit:

    “Any assault on the underlying protocol may destabilize the ecosystem, risking consumer belongings and undermining confidence.”

    He warned such eventualities may result in liquidity crises akin to a “financial institution run.”

    Disagreements

    The proposal additionally triggered a dispute with DeFi protocol Aave, a key participant in Polygon’s ecosystem.

    Aave-Chan Initiative founder Marc Zeller submitted a counter-proposal suggesting that Aave exit Polygon because of issues over safety dangers tied to the initiative. His response famous that deploying funds into Morpho may benefit Aave’s opponents.

    Polygon Labs responded with disappointment, mentioning that Aave had beforehand proposed the same strategy for deploying stablecoin reserves into yield-generating mechanisms. It additionally accused the Aave of appearing in a “monopolistic” method.

    The choice to reject the proposal displays the group’s prioritization of safety and consumer belief over aggressive yield-generation methods. Whereas the thought has been shelved, Polygon acknowledged the necessity for artistic approaches to handle its substantial stablecoin reserves successfully.

    The platform’s PoS bridge stays one of many largest holders of on-chain stablecoins, presenting each a possibility and a problem for future governance discussions.

    Talked about on this article



    Supply hyperlink

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Crypto Professional Shares How To Get To $1 Million With XRP | Bitcoinist.com

    September 7, 2025

    ETH value rally secure regardless of crypto and inventory merchants’ issues over US macro

    September 7, 2025

    Crypto information: what occurred in August and the forecasts for September

    September 7, 2025

    Fed Price Cuts May Spark a Crypto Rally – Right here’s Why LINK Might Go away ADA Behind – BlockNews

    September 6, 2025
    Latest Posts

    Bitcoin vs. USD: What’s the Actual Distinction?

    September 7, 2025

    Bitcoin Treasury Purchases Down Amid Report Holdings – What Does This Imply?

    September 7, 2025

    JasmyCoin to regain $1? Why ‘Japan’s Bitcoin’ is a darkish horse for 2030

    September 7, 2025

    Bitcoin might sink ‘beneath $50K’ in bear? Justin Solar’s WLFI saga continues: Hodler’s Digest, Aug. 31 – Sept. 6

    September 6, 2025

    BTC, USDT, USDC Lead World Flows: Chainalysis

    September 6, 2025

    Greatest Crypto to Purchase Now as Public Companies Tighten Grip on 1 Million BTC – CryptoDnes EN

    September 6, 2025

    Bitcoin Worth Vs. BTC Treasury Firms: Attention-grabbing 1:4 Ratio Pops Up

    September 6, 2025

    Bitcoin (BTC) Worth Prediction for September 6 – U.In the present day

    September 6, 2025

    CryptoVideos.net is your premier destination for all things cryptocurrency. Our platform provides the latest updates in crypto news, expert price analysis, and valuable insights from top crypto influencers to keep you informed and ahead in the fast-paced world of digital assets. Whether you’re an experienced trader, investor, or just starting in the crypto space, our comprehensive collection of videos and articles covers trending topics, market forecasts, blockchain technology, and more. We aim to simplify complex market movements and provide a trustworthy, user-friendly resource for anyone looking to deepen their understanding of the crypto industry. Stay tuned to CryptoVideos.net to make informed decisions and keep up with emerging trends in the world of cryptocurrency.

    Top Insights

    Solana Worth Prediction – Will SOL Bounce Hardest As Crypto Costs Crash?

    January 27, 2025

    3 Finest Crypto Wallets For 2025 – High Decisions for Merchants & Traders

    March 16, 2025

    Binance Coin (BNB) Worth Prediction for July 24

    July 24, 2025

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    • Home
    • Privacy Policy
    • Contact us
    © 2025 CryptoVideos. Designed by MAXBIT.

    Type above and press Enter to search. Press Esc to cancel.