Given the extensive discussion already present, we’ll be brief in our assessment as an independent risk service provider.
- We commend the swift initiation of public discourse, allowing stakeholders to voice their perspectives. The high level of forum participation represents a net positive for the overall ecosystem.
- We are of the opinion that rehypothecating bridge assets presents unacceptable risks. The proposed structure introduces multiple dependencies, counterparties, and attack vectors that could compromise fundamental network security.
- Considering the current sentiment indicating the Polygon pre-PIP proposal is unlikely to proceed, we recommend no immediate changes to Aave Polygon market parameters are necessary as the risk profile remains unchanged.
- Should Aave DAO opt to reduce network exposure, we recommend a measured and gradual approach to protect both users and dependent protocols (e.g., some Curve pools use A-tokens on Polygon).