0xloth from Morpho here
- Blast has shown that productive bridges are a successful GTM but can’t go past an airdrop
- This exciting proposal to plug idle PoS bridge liquidity into existing active borrow demand decrease drastically the opportunity cost of Bridges while funding ecosystems/chains in a highly sustainable way If this adds complexity to previously locked idle liquidity, it adds a ton of exciting advantages for the Polygon Ecosystem:
- Sustainable incentives, i.e, yield experienced on any Defi Apps, will skyrocket, creating strong incentives for both builders and new bridges. These incentives won’t be paid but earned, effectively decreasing sell pressure for POL
The more users bridge, the higher the incentives become on Polygon PoS via the Yearn, which is very reflexive.
Morpho design is particularly well suited to such a bridge use case, enabling Polygon Foundation to own:
- Risk (collateral selection with Allez)
- Code (Immutable code base, with no upgrade patterns and therefore post-integration costs)
- Fees (100% of Vault Generated fees will go to Polygon’s Yearn Vault
We’re very excited to work with Allez Labs, Superstate, Sky, Angle, Yearn and Polygon Foundation/Delegates to make this happen in 2025.