30s Summary

Allez Labs has proposed to generate profitable options for $1.3bn in digital currencies held in Polygon’s proof-of-stake bridge, which could yield $70m annually. The digital currencies, including Dai, USDt, and USDC, would be locked in Morpho Vaults managed by Allez on behalf of Polygon. Profits would be redirected to the Decentralized finance (DeFi) platform Yearn, encouraging investment in Polygon’s proof-of-stake and AggLayer ecosystems. Amid a DeFi comeback, the proposal could lead to greater earnings for digital assets and expedite decentralized finance. The DeFi sector, valued at $136bn, is projected to rival traditional banks.

Full Article

Allez Labs has put forward an idea to create money-making options for around $1.3 billion in digital currencies held in Polygon’s proof-of-stake digital bridge.

They’ve suggested that the digital currencies — which include Dai, USDt from Tether, and USDC from Circle — could potentially make about $70 million in profit annually instead of just sitting there doing nothing.

Allez Labs’ suggestion is to lock the USDC and USDT digital money in Morpho Vaults. The vaults would belong to Polygon but would be managed by Allez. The return on investment would be made by Morpho, a decentralized loan protocol. This is because there are currently no existing wrappers for these products.

The profit would then be redirected to Yearn, a decentralized finance system that will manage the Ecosystem Incentives Program. Yearn will offer the incentive rewards in Polygon’s proof-of-stake and AggLayer digital financial ecosystem to boost project development.

In simpler terms, more earnings for digital assets and faster money flow are essential for decentralized finance. This field is currently making a big comeback after a plunge in market activity between April 2022 and March 2024.

According to DefiLlama, the total value locked in the decentralized finance sector is roughly $136 billion in December. This is a massive leap from the lows of about $36 billion in 2023 and is getting closer to its 2021 highs of around $176 billion.

In November, Curve, a decentralized exchange, recorded annual incomes of $37 million — a 23% increase from the previous month. A rep for Curve says the surge in DeFi activity is a response to Donald Trump’s win in the U.S. elections.

The recent uptick in DeFi activity is also partly due to the rise of tokenized Bitcoin products that let owners of the asset gain yield on their Bitcoin and use the asset in decentralized finance protocols in the Ethereum ecosystem.

As the DeFi sector grows up, industry execs predict it will start introducing financial products that can go up against traditional banks. Yep, the digital financial world isn’t too far behind!