Aave Contributors Propose Withdrawal of Lending Services from Polygon’s PoS Chain

The Aave community has received a proposal from contributor team Aave Chan to withdraw lending services from Polygon's PoS chain. This is in response to another proposal from the Polygon community to use more than $1 billion in bridge assets to generate returns. The proposal, written by Aave Chan founder Marc Zeller, aims to phase out Aave's lending protocol to protect the protocol from potential security risks in the future. He requested that the risk parameters of Aave protocol versions 2 and 3 on the Polygon PoS chain be adjusted to reduce the possible threats of using bridged stablecoins and generate returns if Polygon's proposal is approved. His proposal suggests strict measures to offset the potential risks of the Aave lending market on the Polygon PoS chain. These measures include setting a 0% loan-to-value ratio for all assets and raising the reserve ratio to 85%, effectively blocking further deposits or preventing users from borrowing with collateral. (The Block)