Polygon community releases a new proposal, aiming to deploy about 1.3 billion dollars of stablecoin reserves on the Polygon PoS Bridge
According to The Block, Web3 risk provider Allez Labs has drafted a Pre-Polygon improvement proposal with DeFi protocols Morpho and Yearn, seeking the opinion of the Polygon community on deploying about $1.3 billion in stablecoin reserves (DAI, USDC and USDT) from the Polygon PoS bridge.
The proposal claims that because these $1.3 billion stablecoin reserves are idle, they represent an opportunity cost of about $70 million per year. Its purpose is to use these funds to incentivize additional activity in the Polygon PoS and broader AggLayer.
The stablecoin reserves will be gradually deployed into ERC-4626 vaults for each type of asset. It is proposed that DAI reserves be stored in Maker's sUSDS vault, while USDC and USDT will utilize Morpho's vault as their primary source of income. According to the proposal, these vaults will be risk-managed by Allez.
The proposal will be discussed through community forums and Polygon's dedicated protocol governance committee.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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