Gauntlet Recommendations to Lower stMATIC/MaticX non-emode LT/LTV on Polygon v3
01Summary
Gauntlet proposes reducing borrowing power for stMATIC and MaticX on Polygon v3 by lowering their non-emode Loan-to-Value (LTV) and Loan-to-Threshold (LT) ratios to mitigate risks from declining MATIC LST liquidity and recursive borrowing exposure.
- Type
- parameter change
Key changes
- stMATIC non-emode LT reduced from 65% to 60%(medium)
- stMATIC non-emode LTV reduced from 50% to 45%(medium)
- MaticX non-emode LT reduced from 67% to 62%(medium)
- MaticX non-emode LTV reduced from 58% to 45%(high)
Notable concerns
- Risk of reduced WMATIC supply in the future impacting Polygon v3 long-term growth
- Risk of reduced capacity for recursive LST-WMATIC borrowing
- Risk of increased stablecoin borrowing against LST collateral amid decreasing MATIC LST liquidity
Generated by Kvorum
02Description
Summary
Gauntlet recommends lowering stMATIC, MaticX non-emode LT/LTV on Polygon v3 to improve the risk profile associated with MATIC LSTs.
Reducing MATIC LST non-emode LT to lower borrowing power can help combat the following.
- Risks of reduced WMATIC supply in the future, which may cause long-term growth risk for Polygon v3
- Risks of reduced capacity for recursive LST - WMATIC borrowing
- Risks associated with increased stablecoin borrowing against LST collateral, amidst decreasing MATIC LST liquidity
Specification
| Chain | Asset | Action | Current Value | New Value |
|---|---|---|---|---|
| Polygon | stMATIC | Lower non-emode LT | 65% | 60% |
| Polygon | stMATIC | Lower non-emode LTV | 50% | 45% |
| Polygon | MaticX | Lower non-emode LT | 67% | 62% |
| Polygon | MaticX | Lower non-emode LTV | 58% | 45% |
Implementation
The proposal implements changes on Polygon v3 using the following pre-deployed payloads:
References
- Discussion: https://governance.aave.com/t/arfc-gauntlet-recommendation-to-lower-stmatic-maticx-non-emode-lt/14859
- Snapshot: https://snapshot.org/#/aave.eth/proposal/0x151df3127d187c203ff3a975d8ab9e34493d77edf67ec6884dc086d5aea9ce89
Disclaimer
Gauntlet has not received any compensation from any third-party in exchange for recommending any of the actions contained in this proposal.
Copyright
Copyright and related rights waived via CC0.
By approving this proposal, you agree that any services provided by Gauntlet shall be governed by the terms of service available at gauntlet.network/tos.
03Mismatch analysis
The proposal follows Aave's standard cross-chain governance pattern: a single mainnet 'execute(address)' call that delegates to a pre-deployed payload contract, which in turn applies the risk parameter changes on Polygon v3. The decoded calldata only reveals the address of this payload contract, not the specific LT/LTV values it sets. This is normal and expected for Aave governance proposals of this type — the actual parameter changes (stMATIC and MaticX LT/LTV reductions) are implemented inside the referenced payload contract, which is linked in the 'Implementation' section of the description and matches the pattern used across Aave v3 risk parameter updates. Because the on-chain action visible here is just a pointer to that payload rather than the granular parameter-setting calls themselves, I cannot directly verify the specific percentage values (65%->60%, 50%->45%, 67%->62%, 58%->45%) against calldata. There is no evidence of a mismatch — the target chain, contract pattern, and general action (executing a risk parameter update payload) are all consistent with the description — but the inability to decode the payload's internal calls limits verification confidence. No red flags such as fund transfers, role grants, or mismatched targets are present in the visible calldata. Given this, I assess the proposal as consistent with the description at the level of detail available, but confidence is low due to the opacity of the payload's internal logic.
Generated by Kvorum
04Actions
- Target
- 0x158a…d45b
- Value
- 0 wei
- Function
- execute(address)
- Arguments
{ "0": "0xff374aD1be52fF54Cf576586253a113d3F48D4B7" }- Calldata
05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
No forum thread is confidently linked to this proposal.
08Similar proposals
- aaveexecutedGauntlet recommendation to lower stMATIC, MaticX non-emode LT, pt 294%
- aaveexecutedGauntlet recommendation to set WETH slope 1 to 3.3% on v3 markets, excluding Ethereum v380%
- aavecanceledGauntlet recommendation to set MAI/MIMATIC isolated debt ceiling to 0 for Arbitrum, Avalanche, Polygon, Optimism v377%
- aaveexecutedGauntlet Recommendations to Lower WETH Variable Base to 0 on Arbitrum, Optimism v375%
- aaveexecutedMAI/MIMATIC deprecation, 2023.10.3173%
- aaveexecutedFreeze MAI/MIMATIC, set LTV -> 0 for Arbitrum, Avalanche, Polygon, Optimism v371%
- aaveexecutedGauntlet recommendation for MAI / MIMATIC deprecation phase 270%
- aaveexecutedAdd MAI to Aave V3 on Polygon58%
- aaveexecutedUpdate Mai Token implementations, unpause & enable flashloanable55%
- aaveexecutedAdd MAI to Aave Arbitrum V3 pool54%