Aave exploded with a $1.3 billion 'Polygon chain withdrawal' crisis, and the founder of Polygon snapped back: Monopolizing goes against the spirit of web3.

DeFi protocol Aave community responded to a proposal regarding the idle $1.3 billion stablecoin reserve on the Polygon Cross-Chain Interaction bridge for yield farming. The proposal plans to withdraw Aave from Polygon due to potential risks caused by the proposal. Web3 risk asset management institution Allez Labs and DeFi protocols Morpho and Yearn jointly wrote a Pre-PIP proposal on December 13th, hoping to seek Polygon community's agreement to deploy the $1.3 billion stablecoin reserve on the Liquidity pool of Polygon PoS Portal Bridge to incentivize Polygon's DeFi ecosystem. According to the proposal's estimate, utilizing the idle $1.3 billion stablecoin reserve for yield farming can reduce opportunity costs by $70 million annually. However, Aave community is considering withdrawing from Polygon due to potential risks if the Pre-PIP proposal is passed. Aave's contributor team ACI founder Marc Zeller proposed to adjust Aave v2 and v3's risk parameters to cope with the potential risk configuration of Cross-Chain Interaction assets in the upcoming proposal that may significantly change the risk configuration. Zeller added that Cross-Chain Interaction bridge vulnerabilities have caused the greatest losses in the DeFi ecosystem historically. On the other hand, Polygon Labs CEO Marc Boiron criticized Aave's proposal as anti-competitive behavior towards Morpho and Yearn. Moreover, Polygon co-founder Sandeep Nailwal criticized Aave's leadership as extreme monopoly and anti-competitive behavior, which is not in line with the spirit of Web3. However, Aave's leadership responded that they are taking a strong and firm stance against an unpopular and high-risk proposal.