PANews reported on December 16 that according to The Block, the Aave community received a proposal from contributor team Aave Chan to withdraw its lending services from Polygon's Proof of Stake (PoS) chain. This action is a response to another proposal from the Polygon community, which plans to use more than $1 billion in bridge assets for yield generation. Aave is the largest decentralized application on Polygon by total locked value, with more than $466 million in deposits on the PoS chain.

The proposal, written by Aave Chan founder Marc Zeller, aims to phase out Aave's lending protocol to guard against possible security risks in the future. He called for adjustments to the risk parameters of versions 2 and 3 of the Aave protocol on the Polygon PoS chain to reduce potential threats from the use of bridged stablecoins, and proposed taking corresponding measures to obtain returns if Polygon's proposal is passed. His proposal recommends strict measures to offset Aave's potential risks in the lending market on Polygon's PoS chain. These measures include setting a 0% loan-to-value ratio (LTV) for all assets and increasing the reserve factor to 85%, effectively blocking further deposits or preventing users from borrowing against their collateral. "These adjustments are in response to an upcoming proposal that will have a significant impact on the risk profile of bridged assets in the Polygon network," Zeller wrote.

Earlier news , the Polygon community released the "Polygon PoS Cross-Chain Liquidity Plan" proposal, proposing to use the more than $1 billion in stablecoin reserves held on the PoS chain bridge to generate income.