The CEO of Polygon Labs, Marc Boiron, called for a fundamental postponement of how decentralized financing protocols (decentralized financing logs) manage the liquidity and describe the continuing liquidity crisis of the sector as “self -inflicted”.
In an exclusive interview, Boiron Polygon's vision for sustainable Defi outlined and emphasized the liquidity of chain possession and transparent economic models as a way forward.
Boiron criticized Defi protocols to fuel a cycle of “Mercenary Capital” by offering an annual percentage percentage (sky-high percentage) through token emissions. “It is only a liquidity, it is just not an actual loyalty,” he told cointelegraph and located that such strategies result in volatile liquidity that disappears when the yields fall or the costs for tokens stall. This dependence on short -term hype undermines the soundness of the sector and switches off the institutional adoption.
Persecution of the definition through the hype
In order to interrupt this cycle, Boiron asked the protocols to prioritize the foundations for conspicuous returns. “Sustainable Defi needs models during which there’s liquidity for the correct reasons,” he said, pointing to polygons polygons as a blueprint to attain this.
“Protocols can bring their finance ministry to work and earn earnings as a substitute of watering down the token value. Over time, this strengthens the Ministry of Finance, as a substitute of only paying off temporary liquidity providers.”
Polygon's approach focuses on liquidity in chain possession, where protocols construct government bonds to have direct liquidity positions as a substitute of counting on external providers. In contrast to token emissions, which, in accordance with Boiron, quickly attract liquidity, but dilute the token value, the possession of liquidity offers long-term stability and capital efficiency.
According to Boiron, the one compromise on the plan is time. He explained that the development of a treasure requires patience and disciplined management through recorded fees, binding mechanisms or limited emissions.
Polygon is preparing for traditional financing in crypto
For traditional financing (Tradfi), liquidity stability and predictability are prerequisites for the complete Defi adoption:
“Traditional financing runs for models that require stable, reliable market access. If a Defi protocol suddenly loses liquidity or slippers, it creates a risk that almost all institutions simply don’t take.”
Boiron said, nonetheless, that the solutions of polygon – sustainable Ministry of Finance, liquidity and transparent models – should not only for institutions. “These are good financial foundations that work for a protocol,” he said, declining suggestions that the strategy of polygon is just too tight to unravel the broader problems of Defi.
Building a scalable blueprint for liquidity in chain possession in chain owners
Since polygon urges a defi reset, Boiron stays optimistic of supporting framework conditions comparable to the Europe's markets within the regulation of crypto-assets and developing the US instructions. “We are 12 to 18 months away from seeing rather a lot more institutional commitment,” he predicted.
With a view of 2026, Boiron provides for a more stable defi ecosystem with less volatility, stronger community leadership and highly developed financial products that bridge tradfi and real assets. He said polygon (pole) could reduce confidence in mercenary capital and promote true decentralization.
He added that POL is the premise for long -term growth since it helps protocols to construct higher products and hire users as a substitute of closing liquidity gaps or diluting tokens to remain above water:
“Pol doesn't solve every little thing by itself, but there are logs to properly master larger challenges comparable to user loyalty and capital inflows.”
Boiron's core message of Defi protocols is obvious: “Sustainable economy at all times wins in the long term.” While the market pressure makes it tempting to pursue high apys, he found that surviving protocols from previous cycles prove the worth of sustainability. “Other teams begin to get it,” he said, and asked the ecosystem to use models that prioritize long -term growth from fleeting sums.
