ARC: Adding current Mainnet collaterals to Polygon

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The discussion focused on expanding collateral support on Polygon, considering liquidity and market stability. Suggestions included a 50% loan allowance to balance the Polygon pool and enabling Aave staking on Polygon for enhanced security, aiming to improve protocol accessibility despite some concerns.

The discussion began with Josef expressing curiosity about the lack of support for all Mainnet collaterals on Polygon, specifically mentioning Chainlink, SNX, and CRV. He queried whether it was necessary to add each collateral individually through Proposals and Voting or if all approved collaterals on the mainnet could be added with a single request1.

In response, Emilio clarified that the initial selection of collaterals was based on liquidity, with the most liquid listed first to reduce liquidation risk. He pointed out that many collaterals on the main market are illiquid on Polygon, which could risk insolvency for the Polygon market2.

Chab, however, proposed that with the market now filled on Polygon, the risk of adding more assets is minimal. He suggested starting with a 50% loan allowance to balance the pool on Polygon and help balance the global locked value. He also advocated for allowing Aave staking on Polygon to improve safety and total security of the Aave protocol on Polygon, especially for smaller holders. Despite the voting issues, he concluded that listing more and staking on the Polygon market would improve protocol accessibility3.

In conclusion, the discussion revolved around the potential expansion of collateral support on Polygon, with considerations of liquidity and market stability being key factors. The idea of a 50% loan allowance was proposed to balance the pool on Polygon, and the possibility of Aave staking on Polygon was suggested to enhance protocol security. Despite some concerns, the consensus leaned towards expanding collateral support to improve protocol accessibility.

Posted 3 years ago

Last reply 3 years ago

Summary updated 2 months ago

Last updated 06/12 00:44