Users across DeFi are looking for strong, durable sources of yield. One approach that PoS chains have taken to achieving this is by holding some portion of bridge assets in a yield bearing token. This has seen success on both Gnosis Chain and Blast, where the native stablecoins are yield bearing, or can be staked for higher-than-mainnet yields. It is important that this yield comes from safe, well proven systems built by responsible, trusted teams.
We propose for the Polani upgrade that the bridge hold some portion of assets in stataUSDC. stataUSDC is a wrapped version of the Aave aToken for USDC. This is a token which increases in value over time instead of increasing in balance like aUSDC would. It has offered an average 5.81% APY over the past year on the Ethereum mainnet. Aave USDC is the only yield earning USDC token with deep enough liquidity and attractive yields which would make this integration feasible. Furthermore, with the Umbrella program, aUSDC will be the safest place for anyone to earn on chain yield with USDC. This makes it a perfect choice for Polygon’s bridge deposits with important positive implications for the Polygon ecosystem.
We propose holding 50% of the PoS USDC tokens in stataUSDC. This will allow users to receive higher yields on the PoS chain, attracting more TVL. By integrating stataUSDC into the Polygon PoS bridge Polygon’s users get a better user experience and Aave continues to be a leading supporter of Polygon’s growth.
We look forward to refining this proposal as the process evolves.