Hi folks,
amplice here from Gearbox.
Just wanted to throw our hat in the ring as a potential place for Polygon to deposit bridge assets.
I believe our passive lending pools are a great fit for the community’s desire for yield generation on bridged assets while maintaining high security standards and user accessibility/withdrawability.
Yield Generation on Bridged Assets
Gearbox Protocol offers a secure and efficient way to generate yield on assets held in the Polygon PoS bridge on L1. Our current yields are pretty competitive considering where the yield comes from.
- ETH: 4.03% APY
- USDC: 8.59% APY
- USDT: 7.00% APY
- DAI: 6.91% APY
- WBTC: 2.04% APY
These rates demonstrate our ability to provide good returns on idle assets, potentially generating millions in additional revenue for the Polygon ecosystem.
Keep in mind that this yield is generated from simple overcollateralized lending (similar in structure to Aave) - nothing complicated about where the yield comes from, no RWAs, complicated strategies, LP risks, depeg risks or anything like that.
Security and Risk Management
Security is paramount at Gearbox. Our track record speaks for itself:
- Zero bad debt on the passive lending side
- Comprehensive audit history, including recent full V3 coverage by ChainSecurity and ABDK
- Ongoing audits and security checks by reputable firms
- Robust bug bounty program with rewards up to $200K for critical vulnerabilities
- Onboarding external risk curators like Chaos Labs to further enhance risk management
See our audit history and bug bounty info here:
https://docs.gearbox.finance/risk-and-security/audits-bug-bounty
Simple Yield Model, Instant Withdrawability
Because the passive lending side of Gearbox is a straightforward lending market, funds are basically always instantly withdrawable - similar to Aave, interest rates start spiking extremely high when utilization gets past 85% or so, encouraging leverage users to wind down positions and/or new lenders to lend at high rates. As such, there is basically always liquidity.
Defi degens sometimes say “if you don’t know here the yield comes from, you ARE the yield”. When lending in Gearbox, you always know where the yields come from.
Proposal
We suggest depositing a portion of Polygon PoS bridge assets into Gearbox passive lending This should be implemented in phases, starting with a small allocation and potentially scaling up based on performance, security and community feedback.
Benefits for Polygon
- Generate additional yield on currently idle assets
*This yield could be somehow redistributed to Polygon users, stakers, etc. - Enhance the overall value proposition of the Polygon ecosystem
TLDR: Gooners, pls consider Gearbox as a venue for parking PoS bridge idle assets on L1, the yields are good, the yield model is very straightforward (simple lending), and we take security very seriously.