Polygon CEO Marc Boiron has called for a crucial transformation in decentralized finance (DeFi) liquidity management, describing the current liquidity crisis as self-inflicted. He advocates for a shift away from reliance on short-term yield strategies and mercenary capital towards sustainable, chain-owned liquidity models that can ensure stability in the long term. Boiron underscores that protocols need to focus on solid economic foundations rather than extending flashy yields that only lead to transient liquidity. He highlights Polygon’s own POL token as a model for how protocols can manage their treasuries effectively, fostering true loyalty among liquidity providers instead of diluting token value through emissions. For traditional financial institutions, reliable and stable liquidity is fundamental for full-scale adoption of DeFi, and Boiron expresses optimism about forthcoming regulatory support, especially from frameworks like Europe’s Markets in Crypto-Assets Regulation. Looking ahead, he envisions a DeFi landscape with reduced volatility and improved governance, emphasizing that sustainable economic practices will stand the test of time in the evolving crypto ecosystem.

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