Avara founder supports proposal to remove Polygon markets from Aave

Stani Kulechov, founder and CEO of Avara, has expressed support for a proposal to offboard Polygon (CRYPTO:MATIC) markets from the Aave (CRYPTO:AAVE) platform.

This proposal follows a Polygon Improvement Proposal (PIP) from Allez Labs and Morpho, which aimed to use stablecoins in Polygon's proof-of-stake Portal bridge to generate yield.

However, Kulechov raised concerns about the safety risks posed by the proposal.

He emphasised that bridge exploits, like the $100 million Harmony Horizon bridge hack in June 2022, could lead to significant financial losses in decentralised finance.

He described the proposed PIP as an unacceptable risk for Aave, reinforcing the need for caution when engaging with bridge-based yield strategies.

His post aligns with a December 13 suggestion from Marc Zeller, Aave chain founder, who recommended adjusting risk parameters on Aave v2 and v3 to discourage Polygon users from using Aave.

This measure was aimed at reducing the appeal of depositing funds into Aave’s lending protocol on the Polygon network.

Meanwhile, Polygon’s founder, Sandeep Nailwal, voiced his objections on social media, calling Aave’s proposal "monopolistic."

Nailwal pointed out that Aave's leadership had submitted a similar pre-PIP to utilise stablecoins in the Polygon PoS bridge for yield, which was initially met with enthusiasm.

He argued that the Morpho proposal, despite being generally rejected by the Polygon community, was more decentralised and incentivised further development within the Polygon ecosystem.

This factor, Nailwal noted, contributed to the popularity of the Morpho-Allez Labs proposal, which garnered more support within the community than Aave's approach.

At the time of reporting, the price of Polygon (MATIC) was $0.5187, and the price of Aave (AAVE) was $336.95.