Aave Community Votes to Halt Lending on Polygon Amid Yield Farming Risks

The Aave community has made a significant decision on February 26th, as members voted decisively to halt lending and borrowing services on the Polygon PoS chain. This move stems from widespread discontent regarding **Polygon’s proposal** last December, which suggested utilizing over **1 billion USDT** for yield farming initiatives. **Aave’s founder**, Marc Zeller, advocated for stringent **risk parameters** to mitigate potential losses, asserting that Polygon’s yield farming strategy posed excessive risks and could trigger defaults within the system.

As the largest decentralized application on Polygon, Aave boasts a Total Value Locked (**TVL**) exceeding **$300 million**. In response to Aave’s decision, **Polygon Labs** CEO Marc Boiron expressed hopes that Aave could reconsider the suspension. Despite this, the Aave DAO moved forward, passing a proposal to adjust the stablecoin **Loan-to-Value (LTV)** ratio to **0%**, effectively preventing any new borrowing activities. Presently, the vote count indicates overwhelming support for disengagement from Polygon, with over **690,000 votes** in favor, contrasted by around **117,000 opposing** votes.