MaticX Supply Cap Increase Polygon v3
01Summary
Increase MaticX Supply Cap on Aave v3 Polygon from 8.6M units to 17.2M units (100% increase) to accommodate high demand and enable users to deposit MaticX, earn SD rewards, and participate in yield strategies.
- Type
- parameter change
Key changes
- Increase MaticX Supply Cap from 8.6M units to 17.2M units on Polygon v3(high)
- Enable additional MaticX deposits and participation in recursive MaticX/wMATIC yield strategy(high)
- Support continued SD reward distribution by Stader Labs(medium)
Notable concerns
- Supply Cap reached 99.25% utilization within 24 hours of previous upgrade, indicating strong demand but rapid depletion risk
- Proposal depends on Stader Labs continuing SD reward distribution to incentivize deposits
Generated by Kvorum
02Description
Summary
This publication proposes increasing the MaticX Supply Cap on Polygon v3 from 8.6M units to 17.2M units.
Abstract
The Supply Cap for MaticX was increased from 6.0M units to 8.6M units. Within 24 hours of the upgrade going through, the utilisation of the MaticX reserve has reached 99.25%.
This proposal seeks to increase the Supply Cap by 100% to 17.2M units. Increasing the Supply Cap will enable users to deposit MaticX, earn SD rewards and enter the recursive MaticX/wMATIC yield strategy. The 17.2M unit Supply Cap figure was prepared by Chaos Labs.
Stader Labs is currently offering SD rewards to user who deposit MaticX. This proposal seeks to encourage Stader Labs to continue distributing SD rewards by increasing the Supply Cap and enabling more MaticX to be deposited into Aave.
Motivation
Over the previous months, Llama has been working with various communities to craft favourable conditions conducive to growing TVL and Revenue by facilitate the creation of several yield aggregation products.
The below details various proposals reflecting Llama's efforts to date:
- Proposal to add MaticX to Aave v3 Polygon Market
- ARFC Aave v3 Polygon wMATIC Interest Rate Update
- ARFC SD Emission_Admin for Polygon v3 Liquidity Pool
- ARFC stMATIC & MaticX Emission_Admin for Polygon v3 Liquidity Pool
- ARFC MaticX Polygon v3 Upgrade
After executing the ARFC MaticX Polygon v3 Upgrade proposal, within 24hrs, the Supply Cap of 8.6M has nearly been reached.
In order to enable the MaticX reserve to grow, the Supply Cap needs to be raised enabling more deposits into the reserve. Furthermore, Stader labs has indicated there are several large MaticX holders seeking to deposit into the MaticX reserve once the SupplyCap has been raised.
With reference to the new ARFC Aave V3 Caps update Framework the preferred path forward is to implement several upgrades to gradually increase Aave's MaticX exposure over time.
This proposal will increase the Supply Cap from 8.6M units to 17.2M units. This figure was provided by Chaos Labs and has been discussed on the Aave Governance Forum.
Specification
Ticker: MaticX
Contract: polygon: 0xfa68FB4628DFF1028CFEc22b4162FCcd0d45efb6
| Parameter | Current Value | Proposed Value |
|---|---|---|
| SupplyCap | 8.6M units | 17.2M units |
Implementation
A list of relevant links like for this proposal:
The proposal Payload was reviewed by Bored Ghost Developing.
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
placeholder
Generated by Kvorum
04Actions
- Target
- 0x158a…d45b
- Value
- 0 wei
- Function
- execute(address)
- Arguments
{ "0": "0x6B5af634E20eAa5Fc85F9943913aa46A088ac29e" }- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| 620x62a4…816a | For | 81.6K | 0.00% | — | 4y ago |
| B80xb83b…cf5c | For | 80.2K | 0.00% | — | 4y ago |
| B90xb933…8dd1 | For | 41.7K | 0.00% | — | 4y ago |
| 7A0x7ae1…e585 | For | 26.7K | 0.00% | — | 4y ago |
| 160x1664…36d9 | For | 16.9K | 0.00% | — | 4y ago |
| EA0xea17…6676 | For | 10.6K | 0.00% | — | 4y ago |
| 5B0x5b3b…7c98 | For | 6.4K | 0.00% | — | 4y ago |
| 210x2155…59aa | For | 9.2 | 0.00% | — | 4y ago |
| A00xa0ef…2d56 | For | 8.3 | 0.00% | — | 4y ago |
| 190x196a…411f | For | 1.7 | 0.00% | — | 4y ago |
| 9F0x9fe6…5e03 | Against | 1.2 | 0.00% | — | 4y ago |
| CC0xcc0d…501c | For | 1 | 0.00% | — | 4y ago |
| 090x09e3…23cd | Against | 1 | 0.00% | — | 4y ago |
| E90xe95c…32dc | For | 1 | 0.00% | — | 4y ago |
| CB0xcbe7…fe98 | For | 0.8 | 0.00% | — | 4y ago |
| E40xe459…e666 | For | 0.5 | 0.00% | — | 4y ago |
| 770x772e…fd0d | For | 0.4 | 0.00% | — | 4y ago |
| 320x32e3…28a4 | For | 0.2 | 0.00% | — | 4y ago |
| 630x63ba…3b53 | For | 0.1 | 0.00% | — | 4y ago |
| 240x242c…3a78 | For | 0.1 | 0.00% | — | 4y ago |
| AB0xabf4…5e23 | Against | 0 | 0.00% | — | 4y ago |
| EB0xebbc…d863 | For | 0 | 0.00% | — | 4y ago |
07Forum
- [ARFC] Aave V3 Caps update Framework ↗discourse · high confidence
- [ARFC] MaticX SupplyCap Increase Polygon v3 ↗discourse · high confidence
- [ARFC] MaticX Polygon v3 Upgrade ↗discourse · high confidence
- [ARFC] Aave v3 Polygon wMATIC Interest Rate Update ↗discourse · high confidence
- [ARFC] stMATIC & MaticX Emission_Admin for Polygon v3 Liquidity Pool ↗discourse · high confidence
- [ARFC] SD Emission_Admin for Polygon v3 Liquidity Pool ↗discourse · high confidence
- [ARFC] MaticX Supply Cap Increase Polygon v3 ↗discourse · medium confidence
Arguments for
- A direct-to-AIP process for cap changes/FreezeReserve reduces governance delay and helps the protocol adapt quickly to market conditions.— MarcZeller
- Introducing 'Risk Steward' smart contracts controlled by a 2-of-2 Gauntlet/Chaos Labs multisig would automate routine cap updates and cut voting overhead while speeding execution.— bgdlabs, MarcZeller, dtalwar, ChaosLabs, fig
- Historical data shows cap-update proposals have been near-unanimously supported by the community, justifying automation of these routine decisions.— bgdlabs
- Aave governance retains full sovereignty and can revoke Risk Steward permissions at any time, preserving ultimate DAO control.— bgdlabs, MarcZeller
- A leaner, simpler governance structure for routine risk-parameter changes aligns with Aave's broader governance philosophy and improves efficiency.— fig
Arguments against
None surfaced.
Unresolved concerns
- Decreasing supply/borrow caps could in some cases effectively freeze a reserve, and the community's view on allowing this outcome was not settled in the thread.— ChaosLabs
- Whether the Risk Steward multisig should be expanded beyond Gauntlet and Chaos Labs to include entities like ACI, Llama, or governance coordinators remained an open question, with MarcZeller preferring to wait until the pilot matures.— fig, MarcZeller
- The long-term solution of an elected Risk Council with broader risk-management authority was acknowledged as technically possible but still immature, leaving the Risk Steward as only a temporary measure.— MarcZeller
Notable participants
- MarcZellerOriginal proposer of the Caps Update Framework and vocal supporter of the subsequent Risk Steward proposal, responding to community suggestions.
- bgdlabsProposed the Risk Steward smart contract mechanism to automate cap changes via a Gauntlet/Chaos Labs multisig.
- dtalwarRepresented Gauntlet, expressing support for reducing governance overhead through automation.
- ChaosLabsRepresented Chaos Labs, supporting the proposal while flagging a concern about cap decreases effectively freezing reserves.
- figRepresented Flipside, endorsing the leaner governance approach and suggesting future expansion of the multisig.
- Kene_AnodeAgreed to incorporate the new framework into the broader Aave governance process documentation.
Generated by Kvorum
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