CandleFocus

Polygon’s $1B yield plan under fire from former employee

Author: Content Editor
Polygon, a blockchain network, is considering a proposal to generate yield from over $1 billion in stablecoin reserves held on its PoS Chain bridge. The proposal suggests bridging the funds to Ethereum and depositing them into vaults to generate a 7% annual percentage yield (APY), which would yield $91 million per year. The yield would be returned to the Polygon ecosystem and reward depositors. However, there are concerns about the security risks involved in the plan, as any attack on the yield protocols could endanger user assets and destabilize the bridge. Aave, the largest protocol on Polygon, has also raised concerns about the plan. Despite these concerns, the proposal could set a trend for native liquidity solutions in decentralized finance (DeFi).

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