30s Summary

Stani Kulechov, CEO of Avara, is opposing the use of Polygon markets on the Aave platform over safety concerns. This aligns with Aave chain founder, Marc Zeller’s opinion of discontinuing support for Polygon users. Polygon’s Sandeep Nailwal criticized Aave’s move as “monopolistic,” and claims they had proposed an almost identical plan to use stablecoins to boost earnings, but with decentralized and incentive-driven elements to promote new projects in the Polygon ecosystem. He believes this proposal was more attractive and generated more Polygon community interest than Aave’s alternative.

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Stani Kulechov, the big boss at Avara – that’s the company that runs the Aave group – is backing a move to stop using Polygon markets on the Aave platform. There was an earlier plan to use Polygon stablecoins to increase earnings on the Portal bridge which is a part of Polygon’s proof-of-stake system.

But Kulechov thinks this could be a safety issue for Aave. He points out things called bridge exploits that have caused big money losses in the decentralized finance world, referring to a $100 million hack in June as an example. We tried to ask him more about it, but he didn’t get back to us before we published.

Kulechov’s opinion lines up with Aave chain founder, Marc Zeller, who back in December suggested they shouldn’t aim for Polygon users to use Aave and should stop supporting them completely. Zeller thinks they should change how loans work on Aave v2 and Aave v3 on the Polygon network to make it more difficult for Polygon users to put money into the lending protocol.

Polygon’s founder, Sandeep Nailwal, wasn’t happy with Aave’s leaders and called their move to break ties “monopolistic.” Nailwal claims that Aave’s people submitted an almost identical proposal to use stablecoins on the Polygon bridge to boost earnings. Aave seemed hyped about this idea to provide a chance to earn from the $1.3 billion in stablecoins held in the Polygon bridge.

But Nailwal believes the proposal from Polygon was more decentralized and had incentives that would promote new projects in the Polygon ecosystem. These selling points made the Morpho and Allez Labs’ proposal attractive, and he says it got more interest in the Polygon community than Aave’s alternative idea.