Gauntlet recommendation to lower stMATIC, MaticX non-emode LT, pt 2
01Summary
Gauntlet recommends lowering the Liquidation Threshold for stMATIC from 60% to 56% and MaticX from 62% to 58% on Aave V3 Polygon to reduce risks from increased stablecoin borrowing against LST collateral, lower WMATIC supply risks, and encourage WMATIC borrowing instead.
- Type
- parameter change
Key changes
- Reduce stMATIC Liquidation Threshold from 60% to 56%(medium)
- Reduce MaticX Liquidation Threshold from 62% to 58%(medium)
Notable concerns
- Proposal aims to address increased stablecoin borrowing risks against LST collateral amid lower MATIC LST liquidity
- Lower liquidation thresholds may affect users who have borrowed against these assets
Generated by Kvorum
02Description
Summary
Gauntlet recommends follow-ups to our previous recommendations on lowering stMATIC / MaticX non-emode LT. These recommendations are geared towards the following:
- Reducing risks associated with increased stablecoin borrowing against LST collateral, amidst lower MATIC LST liquidity
- Lower risks of reduced WMATIC supply in the future, which may cause long-term growth risk for Polygon v3
- Encourage WMATIC borrowing against MATIC LST collateral
Specification
| Asset | Parameter | Current Value | Recommended Value |
|---|---|---|---|
| stMATIC | LiquidationThreshold | 60% | 56% |
| MaticX | LiquidationThreshold | 62% | 58% |
References
- Implementation: AaveV3Polygon
- Tests: AaveV3Polygon
- 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.
03Mismatch analysis
The proposal follows Aave's standard cross-chain governance pattern: the mainnet proposal contains a single action that forwards execution to a payload contract deployed on Polygon (chain 137), matching the 'Implementation: AaveV3Polygon' link in the description. The actual parameter changes (stMATIC and MaticX Liquidation Threshold reductions) are encoded inside that target payload contract on Polygon, not directly visible in this decoded calldata. Because the specific LT values cannot be verified from the forwardPayloadForExecution call itself, I cannot confirm or deny the exact numeric changes claimed in the specification table. However, the single action's target chain (137/Polygon) and the general mechanism (forwarding a payload for execution) are fully consistent with what the description states it will do. There is no evidence of a target mismatch, extra actions, or omitted actions in what is decodable here. Given the inherent opacity of the forwarded payload's internal logic, confidence in a full value-by-value comparison is low, but no discrepancy is found within the scope of what can be verified from the provided calldata.
Generated by Kvorum
04Actions
- Target
- 0x9aee…2bc7
- Value
- 0 wei
- Function
- forwardPayloadForExecution((uint256,uint8,address,uint40))
- Arguments
{ "0": [ "137", "1", "0x401B5D0294E23637c18fcc38b1Bca814CDa2637C", "11" ] }- Calldata
05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
No forum thread is confidently linked to this proposal.
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