Aave and Polygon representatives fired shots across the air! $1 billion proposal sparks "withdrawal chain" controversy, Aave fears monopolizing peers

Aave, the Ethereum lending protocol, is considering withdrawing from Polygon due to dissatisfaction with Polygon's deployment of $1 billion idle stablecoin reserves in yield farming. Marc Zeller, one of the main representatives of Aave DAO, and a representative named EzR3aL, have expressed their support for withdrawing from Polygon. However, Marc Boiron, the CEO of Polygon, responded by accusing Aave of engaging in monopolistic behavior.

Proposal controversy, how to make good use of Polygon's idle funds

Risk management firm Allez Labs, together with yield farm protocol Morpho Labs and Yearn on 12/12, proposed to transfer $1.3 billion of stablecoins in the Polygon PoS Chain cross-chain bridge to Morpho to earn interest income through borrowing. Assuming successful execution, the program could generate approximately $70 million in revenue annually, further driving the growth of the Polygon ecosystem and applications.

However, the news has caused a great sensation, as hackers often exploit cross-chain bridge attacks, putting all users at high risk, with only benefitting from yield farming protocols such as Morpho and Yearn.

Aave's response, proposing to withdraw from Polygon to reduce risk

Marc Zeller, one of the main representatives of Aave DAO, proposed the off-chain project Operation Polygon(e), suggesting that Aave withdraw from the Polygon blockchain to reduce the potential risks associated with participating in the proposal. Zeller stated that Polygon did not adequately consider the systemic issues it may cause.

Another alias EzR3aL, a representative of Aave DAO, also expressed support for Zeller's withdrawal plan. The combined voting power of the two individuals is sufficient to influence the final decision of Aave DAO. It is expected that the proposal will undergo a preliminary vote early next year.

Aave DAO withdrawal plan code: Polygon(e)

(Cross-chain bridge idle asset investment provokes!) Aave DAO discusses discontinuing operations at Polygon)

Both sides fire across the air, a confrontation between anti-competitive behavior and risk management.

As soon as the news of Aave's withdrawal of the chain came out, Polygon Labs CEO Marc Boiron said in an interview with foreign media that the proposal is still in the preliminary stage, and it is still several months away from landing. At the same time, it also opened the gun to Aave's Polygon(e) operation, "Aave means that we have the ability to clean up Polygon, simply put, they are the boss in this field, they have the final say." Boiron believes that Aave is deliberately suppressing competitors and using its dominance in the DeFi space to suppress its peers.

Aave insisted that Polygon(e) acted purely to resist high-risk and unpopular proposals and denied any intention to silence competitors. However, Zeller's "criticism" of Morpho over the past year has led the outside world to question whether it is "without intention" as Zeller said.

Marc Zeller has been critical of Polygon and Morpho on Twitter this year. Unchaining has a great impact on Polygon and may not be enough for Aave

Aave's position in Polygon is crucial, accounting for 40% of the total value locked in Polygon. If Aave chooses to exit, it could have a significant impact on Polygon. However, Polygon only contributes 1.5% to Aave's revenue, so the financial impact on Aave may be relatively small.

Aave occupies nearly 40% of the total locked volume on Polygon

(POL currency price is bleak, Polygon DAO proposes deploying a $1 billion stablecoin yield farming)

This article Aave and Polygon representatives are open in the air! The $1 billion proposal led to a "chain withdrawal" storm, and Aave feared monopoly peers first appeared in chain news ABMedia.