# Polygon V2 Reserve Factor Updates
AI summary
This proposal seeks to increase the Reserve Factor (RF) for several assets on Aave's Polygon v2 platform by 5%. The Reserve Factor determines the percentage of interest paid by borrowers that goes to the Aave DAO treasury, rather than to depositors. This change is a continuation of a previous proposal and aims to encourage users to migrate their assets from the older Polygon v2 to the newer Polygon v3 platform.
If this proposal passes, depositors on Polygon v2 will see a reduction in their deposit yields, as a larger portion of the interest paid by borrowers will be directed to the Aave DAO treasury. The Aave DAO treasury will benefit from increased revenue. Borrowing rates and user funds are not at risk.
Voting results
🐳 Whale votes
0 votes > 5% VPFull proposal
Polygon V2 Reserve Factor Updates
title: "Polygon V2 Reserve Factor Updates" author: "TokenLogic" discussions: "https://governance.aave.com/t/arfc-reserve-factor-updates-polygon-aave-v2/13937"
Simple Summary
This AIP is a continuation of AIP 284 and increases the Reserve Factor (RF) for assets on Polygon v2 by 5.00%, up to a maximum of 99.99%.
Motivation
This AIP will reduce deposit yield for assets on Polygon v2 by increasing the RF. With this upgrade being passed, users will be further encouraged to migrate from Polygon v2…