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Aave Governance Vote to Halt Polygon PoS Chain Lending, Polygon Could Lose Over $300M TVL

2025.02.26 08:56:18

On February 26th, the Aave community voted by a large majority to cease lending and borrowing services on the Polygon PoS chain. This was mainly due to opposition to Polygon's proposal last December to utilize more than 1 billion USDT for yield farming. Aave founder Marc Zeller proposed strict risk parameters with the aim of preventing further deposits or loans. He holds the view that Polygon's yield farming method is too risky and could lead to default problems. Aave is the largest decentralized application on Polygon, with a total value locked (TVL) of over $300 million. Polygon Labs CEO Marc Boiron has stated that the ideal outcome would be for Aave to abandon the termination plan. However, the Aave DAO has passed a related proposal to adjust the stablecoin loan-to-value (LTV) to 0%, thereby preventing users from borrowing. Currently, there are over 690,000 votes in favor of leaving Polygon, with approximately 117,000 in opposition.
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