Allez Labs proposes yield opportunity for Polygon PoS bridge funds

in pos •  10 days ago 

Allez Labs has submitted a pre-Polygon Improvement Proposal (PIP) to create yield-bearing opportunities for the approximately $1.3 billion in stablecoins held in Polygon’s proof-of-stake (PoS) Portal bridge.

The authors proposed depositing the USDC and USDT stablecoins in Morpho Vaults, which would be owned by Polygon and curated by Allez. Decentralized lending protocol Morpho would generate the yield on these stablecoins due to the lack of native wrappers for these products.

This yield would then redirect to decentralized finance (DeFi) protocol Yearn, which will manage the Ecosystem Incentives Program through separate Polygon Ecosystem Vaults for each stablecoin asset. Yearn will then deploy the incentive rewards in Polygon’s proof-of-stake and AggLayer DeFi ecosystem to encourage project development.

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