Proposal to deposit Polygon POS unproductive bridged assets to Morpho
I'm looking forward to the upcoming discussion, as this would be a very smart move for the @0xPolygon ecosystem.
Here's why.
There are $1.3B of stablecoins sitting idle on the Polygon POS bridge. If these stables were earning at a current rate (7%), that would generate ~$91m of interest a year.
Not doing it is a huge opportunity cost ($91m here) for L2s that could reuse the interest to incentivize the growth of their own ecosystem. And this is precisely what is aiming for.
Here is the breakdown of what is being proposed:
1. Deposit USDC and USDT in a Morpho vault curated by @AllezLabs and owned by Polygon.
2. Those stables are deposited in markets collateralized by USTB @superstatefunds, USDS @MakerDAO & stUSD @AngleProtocol.
3. Redirect that yield to @yearnfi strategies on Polygon POS and soon @AggLayer once live, depositing the liquidity into Polygon ecosystem projects to grow their network.
Note that thanks to Morpho's design, Polygon retains full control over their immutable stack and the associated risks. They can choose their desired curator and the markets listed in the vault.
I'm looking forward to the upcoming discussion, as this would be a very smart move for the @0xPolygon ecosystem.
Here's why.
There are $1.3B of stablecoins sitting idle on the Polygon POS bridge. If these stables were earning at a current rate (7%), that would generate ~$91m of interest a year.
Not doing it is a huge opportunity cost ($91m here) for L2s that could reuse the interest to incentivize the growth of their own ecosystem. And this is precisely what is aiming for.
Here is the breakdown of what is being proposed:
1. Deposit USDC and USDT in a Morpho vault curated by @AllezLabs and owned by Polygon.
2. Those stables are deposited in markets collateralized by USTB @superstatefunds, USDS @MakerDAO & stUSD @AngleProtocol.
3. Redirect that yield to @yearnfi strategies on Polygon POS and soon @AggLayer once live, depositing the liquidity into Polygon ecosystem projects to grow their network.
Note that thanks to Morpho's design, Polygon retains full control over their immutable stack and the associated risks. They can choose their desired curator and the markets listed in the vault.
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