MaticX Polygon Supply Cap Update
01Summary
Proposal to increase MaticX Supply Cap on Polygon v3 from 38M to 50.6M units (75% of current MaticX supply) to accommodate anticipated large deposits and enable yield maximizing strategies during ongoing liquidity mining rewards.
- Type
- parameter change
Key changes
- Increase MaticX Supply Cap from 38M units to 50.6M units on Polygon v3(high)
- Supply Cap increase represents 75% of current MaticX supply on Polygon (67.44M units), matching maximum counterparty risk threshold voted by Aave DAO(high)
- Increase addresses current 87.9% supply cap utilization and 4.6M units remaining deposit capacity to support anticipated 10M-15M unit whale deposit(high)
Notable concerns
- Whale deposit of 10M-15M MaticX units anticipated from Stader Labs partner
- Increased MaticX exposure concentrates counterparty risk at the maximum threshold Aave DAO has previously approved
Generated by Kvorum
02Description
Simple Summary
This publication proposes increasing the MaticX Supply Cap on Polygon v3 from 38.0M units to 50.6M units.
Motivation
The current Supply Cap’s utilisation is hovering around 87.9%, with 4.6M units of MaticX deposit capacity. Discussions with Stader Labs indicates a whale of approximately 10M-15M units is going to deposit on Aave v3. The current supply cap prohibites the full deposit and entering the yield maximising strategy.
With Liquidity Mining (LM) ongoing, MaticX deposit rewards (SD) and wMATIC borrowing rewards (stMATIC & MaticX), it is important that Aave DAO ensures there is adequate capacity to enable the yield maximising strategies to grow.
With an abundance of wMATIC deposits and LM ongoing, we are experiencing exception MaticX deposit growth.
To facilitate the continued growth of MaticX, this proposal seeks to increase the Supply Cap to 75% of supply on Polygon. This is the maximum counterparty risk Aave DAO has voted to support.
Current MaticX supply on Polygon is 67,440,058 units 1. Therefore the newly proposed Supply Cap is 50,600,000 units (rounded up).
With reference to the ARFC Aave V3 Caps update Framework and Direct to AIP Framework the preferred path forward is to implement several upgrades to gradually increase Aave’s MaticX exposure over time whilst bypassing Snapshot.
Specification
Ticker: MaticX
Contract: polygon: 0xfa68FB4628DFF1028CFEc22b4162FCcd0d45efb6 1
| Parameter | Current Value | Proposed Value |
|---|---|---|
| SupplyCap | 38M units | 50.6M units |
References
- Implementation: Polygon
- Tests: Polygon
- Discussion
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The proposal describes a single, well-scoped action: raising the MaticX supply cap on Aave V3 Polygon from 38.0M to 50.6M units, citing utilization and whale deposit rationale. The decoded calldata shows a single action calling execute(address) with an address argument pointing to a payload contract, consistent with Aave's standard cross-chain governance pattern (Ethereum governance triggering a bridged execution of a Polygon payload). This is the expected on-chain shape for this type of proposal per the linked BGD Labs implementation repo (AaveV3_Pol_CapsUpdates_20231107.sol), which the description explicitly references. Because the calldata is a generic execute(address) wrapper rather than a direct, human-readable setSupplyCap call, I cannot independently verify the exact numeric value (50.6M) or the target asset (MaticX) purely from the JSON payload — the actual parameter values are encoded inside the referenced payload contract, not exposed in this decoded action. This limits my ability to confirm exact value matching, so confidence is medium rather than high. However, there is no evidence of a mismatch: the single action, target pattern, and referenced implementation all align with the proposal's stated intent, and there's nothing in the calldata suggesting a different asset, cap value, or additional hidden action. No omissions, extra claims, or misleading phrasing were identified. I did not flag this as low confidence since the description is specific and the calldata structure is the expected form for this proposal type, and no red flags emerged that would warrant a discrepancy call. Overall, the description appears to accurately represent what the on-chain action will do, modulo the inherent opacity of the wrapped execute(address) call, which is standard and non-discrepant for this proposal category.
Generated by Kvorum
04Actions
- Target
- 0x158a…d45b
- Value
- 0 wei
- Function
- execute(address)
- Arguments
{ "0": "0xbAcBe678e2C59343024Fd5755262c7b0f77867D1" }- Calldata
05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
No forum thread is confidently linked to this proposal.
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