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Aave community votes to stop borrowing and lending on Polygon PoS chain, potentially causing Polygon to lose over 3 billion USD TVL
Golden Finance reported that the Aave community decided to stop lending services on the Polygon PoS chain overwhelmingly due to the proposal of using stablecoins with a value of over 1 billion USD for yield generation, which was put forward by Polygon in December last year. Aave founder Marc Zeller proposes strict risk parameter suggestions to prevent users from depositing or borrowing further. He believes that Polygon’s method of generating returns is too risky, which could lead to bad debt issues. Aave is the largest decentralized application on Polygon, with a TVL of over 300 million US dollars. Polygon Labs CEO Marc Boiron has stated that the ideal outcome is for Aave to abandon its termination cooperation plan. However, the Aave DAO has passed a relevant proposal to adjust the stablecoin LTV to 0%, preventing users from borrowing. Currently, over 690,000 votes support leaving Polygon, with about 117,000 opposed.