Polygon DAO Weighs $1.3B Stablecoin Deployment to Generate $70M Annual Yield

A Polygon DAO assemblage cohort is considering a proposal to usage its much than $1 cardinal of idle stablecoin reserves, presently held connected the Polygon PoS Chain span to seizure yields, per a pre-proposal governance post.

“The PoS Bridge presently holds astir $1.3B of stablecoins, which makes it 1 of the largest, but besides idle, holders of stablecoins onchain,” the pre-proposal reads. “At the existent benchmark lending complaint for the 3 large stables this is an accidental outgo of astir $70M annually.”

“The authors judge that DeFi arsenic a full has matured whereby assets held successful the Polygon PoS span tin beryllium utilized productively and securely to incentivize further enactment connected Polygon PoS,” it added.

DAOs are organizations represented by rules encoded arsenic machine programs, controlled by the token holders related to that enactment and not influenced by a cardinal authority.

The program involves utilizing Morpho Labs' vaults to negociate USDC and USDT targeting a blimpish 7% yearly instrumentality done strategies that see high-quality collaterals similar USTB, sUSDS, and stUSD.

That could marque Polygon an further $70 cardinal yearly from idle assets. The output generated would beryllium reinvested backmost into the Polygon ecosystem, supporting maturation crossed the web and its ecosystem.

If the thought passes an archetypal assemblage check, the connection volition purpose to make output by gradually deploying dai (DAI), USD Coin (USDC) and tether (USDT) from reserves into decentralized concern (DeFi) protocols.

Deploying each plus volition necessitate a abstracted connection to beryllium floated and passed by the assemblage successful the future.

Polygon’s POL is down 5% successful the past 24 hours alongside a broader crypto marketplace slide.