MAI/MIMATIC deprecation, 2023.10.31
01Summary
Gauntlet proposes to deprecate MAI/MIMATIC across Aave V3 on Polygon, Avalanche, Optimism, and Arbitrum due to the asset's inability to maintain its ~$0.72 peg. The changes include dramatically reducing Liquidation Thresholds (to 0.01 on most chains), increasing borrow rates (Slope 2 to 300%, Reserve Factor to 95%), freezing the reserve on Avalanche, and setting LTV to 0 on Avalanche.
- Type
- parameter change
Key changes
- Reduce Liquidation Threshold for MAI/MIMATIC from 0.8 to 0.01 on Avalanche, Arbitrum, and Polygon; reduce from 0.8 to 0.65 on Optimism(high)
- Increase Interest Rate Model parameters: Uopt from 0.8 to 0.45, Slope2 from 0.75 to 3.0 (300%), and Reserve Factor from 0.2 to 0.95 (95%) across Arbitrum, Avalanche, Optimism, and Polygon(high)
- Freeze MAI/MIMATIC reserve and set LTV to 0 on Avalanche(high)
Notable concerns
- MAI/MIMATIC has dropped to ~$0.72 and failed to regain peg over several months
- Previous similar action on Avalanche (AIP-318) was not fully executed, necessitating this re-attempt
- Dramatic parameter changes will make borrowing MAI/MIMATIC significantly more expensive and reduce collateral value
Generated by Kvorum
02Description
Summary
Given MAI/MIMATIC price drop to ~$0.72 and its inability to regain peg for the past few months, Gauntlet recommends to begin deprecation of MAI/MIMATIC. We aim to do so by changing LT and increasing borrow rates to incentivize repayment. Additionally, Gauntlet recommends freezing MAI/MIMATIC and setting MAI/MIMATIC LTV -> 0 on Avalanche, which was not executed in this previous AIP.
Specification
LT reductions
| Chain | Asset | Current LT | Recommended LT |
|---|---|---|---|
| avalanche v3 | MAI/MIMATIC | 0.8 | 0.01 |
| arbitrum v3 | MAI/MIMATIC | 0.8 | 0.01 |
| polygon v3 | MAI/MIMATIC | 0.8 | 0.01 |
| optimism v3 | MAI/MIMATIC | 0.8 | 0.65 |
IR recommendations
Adjust Uopt to 0.45, Slope 2 to 300%, RF to 95%
| Chain | Asset | Current Uopt | Current Slope2 | Current RF | Recommended Uopt | Recommended Slope2 | Recommended RF |
|---|---|---|---|---|---|---|---|
| arbitrum v3 | MAI | 0.8 | 0.75 | 0.2 | 0.45 | 3 | 0.95 |
| avalanche v3 | MAI | 0.8 | 0.75 | 0.2 | 0.45 | 3 | 0.95 |
| optimism v3 | MAI | 0.8 | 0.75 | 0.2 | 0.45 | 3 | 0.95 |
| polygon v3 | miMATIC | 0.8 | 0.75 | 0.2 | 0.45 | 3 | 0.95 |
Freeze MAI and set LTV -> 0 on Avalanche
| Chain | Asset | Action |
|---|---|---|
| avalanche v3 | MAI/MIMATIC | Freeze Reserve, set LTV -> 0 |
References
- Implementation: AaveV3Polygon, AaveV3Avalanche, AaveV3Optimism, AaveV3Arbitrum
- Tests: AaveV3Polygon, AaveV3Avalanche, AaveV3Optimism, AaveV3Arbitrum
- Snapshot
- Discussion
Disclaimer
Gauntlet has not received any compensation from any third-party in exchange for recommending any of the actions contained in this proposal.
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.
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 uses Aave's standard cross-chain governance pattern: the mainnet actions only call forwardPayloadForExecution, which relays a pre-deployed payload (identified by an id) to the CrossChainController on each target network. The actual parameter changes (LT reductions, interest-rate curve updates, freeze/LTV-to-zero on Avalanche) are encoded inside those separately deployed payload contracts, not visible in this decoded calldata. What can be verified here is that there are exactly four forwarding actions, one for each of the four chains named in the description (Polygon 137, Avalanche 43114, Optimism 10, Arbitrum 42161), which matches the scope of the proposal (LT changes on all four chains, IR changes on all four, freeze/LTV-zero on Avalanche only, consistent with one forwarded payload per chain covering all its changes). No target mismatches, extra actions, or missing chains are apparent. Because the specific numeric parameters (LT values, Uopt/Slope2/RF) are not decodable from the provided calldata, I cannot fully verify those exact figures against the prose, which is why confidence is medium rather than high — but nothing in the visible calldata contradicts the description, and the architecture (payload forwarding) is standard and expected for multi-chain Aave proposals, not a red flag itself. No discrepancies were identified within the scope that can be verified.”
Generated by Kvorum
04Actions
- Target
- 0x9aee…2bc7
- Value
- 0 wei
- Function
- forwardPayloadForExecution((uint256,uint8,address,uint40))
- Arguments
{ "0": [ "137", "1", "0x401B5D0294E23637c18fcc38b1Bca814CDa2637C", "9" ] }- Calldata
- Target
- 0x9aee…2bc7
- Value
- 0 wei
- Function
- forwardPayloadForExecution((uint256,uint8,address,uint40))
- Arguments
{ "0": [ "43114", "1", "0x1140CB7CAfAcC745771C2Ea31e7B5C653c5d0B80", "6" ] }- Calldata
- Target
- 0x9aee…2bc7
- Value
- 0 wei
- Function
- forwardPayloadForExecution((uint256,uint8,address,uint40))
- Arguments
{ "0": [ "10", "1", "0x0E1a3Af1f9cC76A62eD31eDedca291E63632e7c4", "3" ] }- Calldata
- Target
- 0x9aee…2bc7
- Value
- 0 wei
- Function
- forwardPayloadForExecution((uint256,uint8,address,uint40))
- Arguments
{ "0": [ "42161", "1", "0x89644CA1bB8064760312AE4F03ea41b05dA3637C", "3" ] }- Calldata
05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
No forum thread is confidently linked to this proposal.
08Similar proposals
- aaveexecutedGauntlet recommendation for MAI / MIMATIC deprecation phase 287%
- aavecanceledGauntlet recommendation to set MAI/MIMATIC isolated debt ceiling to 0 for Arbitrum, Avalanche, Polygon, Optimism v386%
- aaveexecutedFreeze MAI/MIMATIC, set LTV -> 0 for Arbitrum, Avalanche, Polygon, Optimism v386%
- aaveexecutedGauntlet recommendation to set WETH slope 1 to 3.3% on v3 markets, excluding Ethereum v374%
- aaveexecutedGauntlet Recommendations to Lower stMATIC/MaticX non-emode LT/LTV on Polygon v373%
- aaveexecutedGauntlet recommendation to lower stMATIC, MaticX non-emode LT, pt 273%
- aaveexecutedGauntlet Recommendations to Lower WETH Variable Base to 0 on Arbitrum, Optimism v372%
- aaveexecutedUpdate Mai Token implementations, unpause & enable flashloanable71%
- aaveexecutedAdd MAI to Aave Arbitrum V3 pool71%
- aaveexecutedAdd MAI to Aave Optimism V3 pool71%