The Aave community has voted to halt lending services on the Polygon Proof-of-Stake (PoS) chain. This decision is a result of opposition to a proposal from Polygon in December 2022 that would have used over $1 billion in cross-chain stablecoins for yield generation. Aave’s founder, Marc Zeller, suggested strict risk parameters to prevent further deposits or loans, citing concerns about the high-risk nature of Polygon’s yield generation method, which could lead to potential debt problems. As the largest decentralized application on Polygon, with over $300 million in total value locked (TVL), Aave’s decision has significant implications for the ecosystem. While Polygon Labs CEO Marc Boiron expresses hope that Aave will reconsider, the Aave Decentralized Autonomous Organization (DAO) approved a proposal to adjust the stablecoin loan-to-value (LTV) ratio to 0%, effectively blocking user borrowing on Polygon. The vote resulted in over 690,000 votes in favor of ending the collaboration with Polygon, against approximately 117,000 who opposed the move. #MATIC