Aave community resolves to withdraw from Polygon lending, Decentralized Finance ecosystem may lose 300 million TVL

Aave community voting to stop lending services on Polygon on-chain will have a profound impact on the Decentralized Finance ecosystem of the chain. (Background: Aave founder criticized Solana's lending protocol Kamino as 'copycat', triggering an intense war of words between the two sides) (Background: Is it really important for Aave to support Solana, sparking community debate?) The Aave community recently decided to terminate lending services on the Polygon PoS on-chain with overwhelming voting results. This decision stems from Aave's opposition to the proposal made by Polygon in December last year. The proposal suggested using a stablecoin with over 1 billion USD in Cross-Chain Interaction for yield generation, but Aave founder Marc Zeller believes that this approach carries high risks, which may lead to bad debts and increase overall risk. Therefore, Aave strongly opposed it and requested stricter control over the risk parameters. Aave's withdrawal will have a far-reaching impact on Polygon's Decentralized Finance ecosystem As the largest Decentralization application on Polygon, Aave's TVL (Total Value Locked) once exceeded 300 million USD. Aave's withdrawal is not only a major loss for the platform, but will also have a profound impact on Polygon's Decentralized Finance (DeFi) ecosystem. Marc Boiron, CEO of Polygon Labs, expressed hope that Aave will eventually abandon the plan to terminate the cooperation and continue to maintain the partnership. However, the Aave DAO has already adjusted the Loan-to-Value ratio (LTV) of stablecoins to 0% in the community proposal, preventing users from borrowing and lending. AAVE's withdrawal may cause a severe blow to Polygon As one of the early infrastructure of Polygon, Aave's withdrawal will have a huge impact on the on-chain Decentralization Finance ecosystem. Whether Polygon can find other applications to fill this gap and recover lost funds still requires observation. Users are also reminded to withdraw their assets as soon as possible. Aave's suspension of lending services on Polygon on-chain, it is recommended that all users on Aave Polygon withdraw their assets as soon as possible to avoid potential future risks. AAVE price continues to fall From the market trend in the past week, the price of AAVE has been falling continuously since February 20, from about 280 USD to the current level of around 200 USD, temporarily at 204 USD. Relevant reports on AAVE price Aave founder criticized Solana's lending protocol Kamino as 'copycat', triggering an intense war of words between the two sides What is really important for Aave to support Solana, sparking community debate? Ethereum Foundation allocates 50,000 ETH to participate in Decentralized Finance, already testing transactions in Aave. The Aave community decided to withdraw from Polygon lending, and the Decentralized Finance ecosystem is at risk of losing 300 million TVL. This article was first published on BlockTempo, the most influential blockchain news media on Dynamic Zone.