A Polygon DAO neighborhood cohort is contemplating a proposal to make use of its greater than $1 billion of idle stablecoin reserves, at the moment held on the Polygon PoS Chain bridge to seize yields, per a pre-proposal governance put up.
“The PoS Bridge at the moment holds round $1.3B of stablecoins, which makes it one of many largest, but additionally idle, holders of stablecoins onchain,” the pre-proposal reads. “On the present benchmark lending fee for the three main stables this is a chance value of round $70M yearly.”
“The authors imagine that DeFi as a complete has matured whereby property held within the Polygon PoS bridge can be utilized productively and securely to incentivize extra exercise on Polygon PoS,” it added.
DAOs are organizations represented by guidelines encoded as pc packages, managed by the token holders associated to that group and never influenced by a government.
The plan entails utilizing Morpho Labs’ vaults to handle USDC and USDT focusing on a conservative 7% annual return by means of methods that embody high-quality collaterals like USTB, sUSDS, and stUSD.
That might make Polygon a further $70 million yearly from idle property. The yield generated can be reinvested again into the Polygon ecosystem, supporting progress throughout the community and its ecosystem.
If the thought passes an preliminary neighborhood test, the proposal will purpose to generate yield by progressively deploying dai (DAI), USD Coin (USDC) and tether (USDT) from reserves into decentralized finance (DeFi) protocols.
Deploying every asset would require a separate proposal to be floated and handed by the neighborhood sooner or later.
Polygon’s POL is down 5% prior to now 24 hours alongside a broader crypto market slide.
