Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Polygon community weighs proposal to deploy over $1 billion in stablecoin on its bridge for yield generation

Polygon community weighs proposal to deploy over $1 billion in stablecoin on its bridge for yield generation

The BlockThe Block2024/12/12 16:00
By:The Block

Quick Take The Polygon community is evaluating a proposal to utilize over $1 billion in stablecoin reserves held on the PoS Chain bridge to generate yield. The proposal was pitched by Web3 risk provider Allez Labs in conjunction with DeFi protocols Morpho and Yearn, aiming to gather community input. The idle reserves currently represent an opportunity cost of around $70 million annually, the proposal claimed.

Polygon community weighs proposal to deploy over $1 billion in stablecoin on its bridge for yield generation image 0

The Polygon community is discussing a proposal to generate a yield from over $1 billion held on the PoS Chain bridge — the canonical bridge connecting the network with Ethereum.

Web3 risk provider Allez Labs, along with DeFi protocols Morpho and Yearn, wrote a Pre-Polygon Improvement Proposal seeking input from the Polygon community on deploying about $1.3 billion in stablecoin reserves (DAI, USDC and USDT) from the Polygon PoS Bridge.

The proposal claimed that these funds represent an opportunity cost of around $70 million annually due to the idle $1.3 billion stablecoin reserve.

It aims to use these funds to incentivize additional activity on Polygon PoS and within the broader AggLayer.

The stablecoin reserves would be gradually deployed into ERC-4626 vaults specific to each asset type.

DAI reserves were proposed to be held in Maker’s sUSDS vault, while USDC and USDT would utilize Morpho Vaults as the primary source of yield. These vaults would be risk-managed by Allez, according to the proposal.

The proposal is set to be discussed through the community forums and the Polygon’s specialized Protocol Governance Council.


1

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.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

Trump fires BLS commissioner, says jobs data was rigged to set him up

Share link:In this post: Trump fired BLS commissioner Erika McEntarfer after a weak July jobs report showed only 73,000 jobs added. He accused McEntarfer of rigging job data to hurt him and the Republican Party. Bill Wiatrowski was named acting commissioner while a replacement is sought.

Cryptopolitan2025/08/01 23:30

Apple’s iPhone sales jump sparks concern over lasting demand

Share link:In this post: iPhone sales climb jumped 13.5% ahead of potential US tariffs. Chinese subsidies and cheaper 16e model helped boost performance. Apple lags rivals in AI race and stock performance leaving investors wary.

Cryptopolitan2025/08/01 23:30

Michael Saylor says Strategy doesn’t want to control Bitcoin supply – “Everyone should own it”

Share link:In this post: Michael Saylor said Strategy doesn’t want to own all the Bitcoin and wants everyone to have their share. Strategy now holds 628,791 Bitcoin and raised $2.5 billion in its latest stock offering to buy more. Saylor said Bitcoin is replacing cash and traditional assets in corporate treasuries worldwide.

Cryptopolitan2025/08/01 23:30
Michael Saylor says Strategy doesn’t want to control Bitcoin supply – “Everyone should own it”