Polygon DAO Considers Deploying $1.3B Stablecoin to Produce $70M Per Year
The strategy targets a cautious 7% yearly return using a variety of techniques and manages USDC and USDT utilizing Morpho Labs' vaults.
A proposal to activate over $1 billion in idle stablecoin reserves is being considered by a cohort of the Polygon DAO community.
The strategy calls for managing USDC and USDT utilizing Morpho Labs' vaults in order to achieve a cautious 7% yearly return.
That might generate an extra $70 million in idle assets for Polygon each year.
According to a pre-proposal governance post, a cohort of the Polygon DAO community is debating a plan to leverage its more than $1 billion in idle stablecoin reserves, which are now kept on the Polygon PoS Chain bridge, to capture dividends.
According to the pre-proposal, "The PoS Bridge is one of the largest, but also idle, holders of stablecoins onchain, currently holding around $1.3B in stablecoins." "This represents an opportunity cost of about $70 million per year at the current benchmark lending rate for the three major stables."
According to the writers, "DeFi as a whole has matured to the point where assets held in the Polygon PoS bridge can be used in a secure and productive manner to encourage further activity on Polygon PoS," the statement continued.
DAOs are entities that are represented by computer programs that encode rules. They are run by the token holders associated with that organization and are not subject to the influence of a central authority.
In order to achieve a cautious 7% yearly return, the strategy calls for managing USDC and USDT utilizing Morpho Labs' vaults and employing tactics that include premium collaterals like USTB, sUSDS, and stUSD.
That might generate an extra $70 million in idle assets for Polygon each year. In order to promote development across the network and its environment, the crop produced would be sent back into the Polygon ecosystem.
The proposal will progressively deploy dai (DAI), USD Coin (USDC), and tether (USDT) from reserves into decentralized finance (DeFi) protocols in an effort to produce yield, if the concept passes a first community inspection.
In the future, the community will need to consider and approve a separate proposal for the deployment of each asset.
Alongside a larger decline in the cryptocurrency market, Polygon's POL has dropped 5% in the last day.
The strategy targets a cautious 7% yearly return using a variety of techniques and manages USDC and USDT utilizing Morpho Labs' vaults.
A proposal to activate over $1 billion in idle stablecoin reserves is being considered by a cohort of the Polygon DAO community.
The strategy calls for managing USDC and USDT utilizing Morpho Labs' vaults in order to achieve a cautious 7% yearly return.
That might generate an extra $70 million in idle assets for Polygon each year.
According to a pre-proposal governance post, a cohort of the Polygon DAO community is debating a plan to leverage its more than $1 billion in idle stablecoin reserves, which are now kept on the Polygon PoS Chain bridge, to capture dividends.
According to the pre-proposal, "The PoS Bridge is one of the largest, but also idle, holders of stablecoins onchain, currently holding around $1.3B in stablecoins." "This represents an opportunity cost of about $70 million per year at the current benchmark lending rate for the three major stables."
According to the writers, "DeFi as a whole has matured to the point where assets held in the Polygon PoS bridge can be used in a secure and productive manner to encourage further activity on Polygon PoS," the statement continued.
DAOs are entities that are represented by computer programs that encode rules. They are run by the token holders associated with that organization and are not subject to the influence of a central authority.
In order to achieve a cautious 7% yearly return, the strategy calls for managing USDC and USDT utilizing Morpho Labs' vaults and employing tactics that include premium collaterals like USTB, sUSDS, and stUSD.
That might generate an extra $70 million in idle assets for Polygon each year. In order to promote development across the network and its environment, the crop produced would be sent back into the Polygon ecosystem.
The proposal will progressively deploy dai (DAI), USD Coin (USDC), and tether (USDT) from reserves into decentralized finance (DeFi) protocols in an effort to produce yield, if the concept passes a first community inspection.
In the future, the community will need to consider and approve a separate proposal for the deployment of each asset.
Alongside a larger decline in the cryptocurrency market, Polygon's POL has dropped 5% in the last day.