Polygon’s cooking up a $1B plan to deploy idle stablecoins into DeFi vaults like Yearn and Morpho, aiming to rake in $91M yearly yields. The cash will boost liquidity, DeFi action, and ecosystem growth. With MATIC now POL and its $5B market cap, Polygon’s gearing up for next-level DeFi vibes.
Polygon is about to make a bold move to boost its DeFi ecosystem by unlocking over $1 billion in stablecoins that have been sitting unused in its PoS Bridge. Right now, stablecoins like are just there with no real purpose. But after this new plan comes in it will surely put that money to work and drive real growth.
This proposal has the backing of some big names in DeFi, including Allez Labs, Morpho Labs, and Yearn Finance. The goal is to deploy about $1.3 billion into carefully selected vaults on Polygon, which will use quality collateral. The plan expects to generate around $91 million in annual yield, which would then be reinvested into Polygon’s ecosystem to increase liquidity, attract more DeFi activity, and enhance the network’s infrastructure.
Paul Frambot, CEO of Morpho Labs, pointed out that these idle reserves represent a major missed opportunity, with potential earnings of $50 million to $90 million each year.
Plus, Polygon has also moved more ahead by recently rebranding its token from MATIC to POL. This incident overall led to its market cap being pushed to $5 billion.
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