The discussion primarily revolved around the proposal by Capncook, a leading figure in DeFi at Polygon, to list UST (TerraUSD) as an asset on the Polygon market¹. UST, an algorithmic stablecoin issued by Terraform Labs, boasts a market cap of over $15.1 billion. The proposal's main objective is to foster the cross-chain adoption of UST and boost Aave's usage on Polygon. Currently, DAI, USDC, and USDT make up 30% of Polygon Aave's Total Value Locked (TVL). The addition of UST could potentially broaden the range of stablecoins available on Polygon and extend UST's use cases.

UST's presence on major Ethereum dApps and its impressive 24-hour volume of over $472M suggest a strong demand for borrowing and lending on Polygon. Terra is transitioning from its centrally held Shuttle Bridge to Wormhole’s more decentralized bridge, a move that mitigates risks associated with centralization and promotes greater cross-chain access. Tokens deployed on Polygon's Proof of Stake (PoS) have seen benefits such as user base growth and increased user activity. For instance, Aave saw a tenfold increase in active users on Polygon PoS compared to Ethereum L1, with user activity reaching a high of ~16x more compared to L1¹.

The proposal received widespread support from community members. Defiiiiii endorsed the integration of Terra and Polygon, viewing it as a significant development². MarcZeller backed the idea of more synergies between the UST ecosystem and Aave, but suggested a cautious approach, proposing an isolation mode onboarding of UST with supply and borrow caps³. CryptoDegen49 also agreed with the proposal, lauding UST as a fantastic, decentralized asset that aligns with the values of crypto⁴.

In conclusion, the proposal to list UST on the Polygon market was met with positive responses, with community members expressing their support and offering suggestions for a cautious approach. The move is expected to enhance the cross-chain adoption of UST, expand the variety of stablecoins on Polygon, and increase Aave's usage on the platform.