Add MaticX as Collateral to USDCv3 Polygon Market
01Summary
Proposal to add MaticX (Stader's liquid staking token for MATIC) as collateral to the USDCv3 market on Polygon. MaticX has $84M+ TVL, $10M+ liquidity across DEXs, and is already integrated with major protocols like Aave and Balancer. Proposed parameters: 6M supply cap, 55% borrow collateral factor, 60% liquidate collateral factor, and 93% liquidation factor, based on Gauntlet recommendations.
- Type
- protocol addition
Key changes
- Add MaticX as collateral asset to USDCv3 Polygon market with supply cap of 6,000,000 tokens(high)
- Set borrow collateral factor at 55% and liquidate collateral factor at 60%(high)
- Set liquidation factor at 93%(medium)
Notable concerns
- MaticX parameters are based on Gauntlet recommendations which should be independently verified
- Stader multi-sig governance model (3 of 5 signatures) introduces centralization risk
- Supply cap of 6M is significantly lower than the 35M+ already deployed on Aave, limiting potential TVL opportunity mentioned in proposal
Generated by Kvorum
02Description
Add MaticX as Collateral to USDCv3 Polygon Market
Using MaticX as a collateral asset has added significant value on other lending platforms like Aave v3 (Polygon) and a popular leveraged staking strategy increasing utilization rates for MATIC. For Compound, MaticX offers a good collateral option because of its extensive use and composability on Polygon.
MaticX - Key Reasons to List on Compound
MaticX is deeply integrated with DeFI projects such as Aave and Balancer. There is $10M+ liquidity in MaticX based pools cross leading DEXs ~35M MaticX supplied on Aave against supply cap of 38M MaticX. Proposal to enhance supply cap to 50.6M MaticX underway. MaticX TVL has grown to 84M+ MATIC steadily ever since its launch in Apr’22. There is 20M+ MaticX on Polygon that haven't been deployed on DeFi yet, which offers a large TVL opportunity for Compound
Proposed Parameters
Liquidity - MaticX currently has a TVL of 84M+ MATIC staked and total liquidity of $10M+ in MaticX based liquidity pools on ecosystem DEXs with Balancer being the lead along with QuickSwap & MeshSwap. This proposal is to set the parameters for MaticX as below based on Gauntlet's recommendations supplyCap: 6,000,000 borrowCollateralFactor: 55% liquidateCollateralFactor: 60% liquidationFactor: 93% The proposal is to be made from this pull request
Background - MaticX
Stader's staking solution for Polygon is MaticX, a liquid staking solution for MATIC. Stader lets users earn MATIC staking rewards and also enables users to participate in other Defi protocols using MaticX while accruing rewards. MaticX is a token that represents your share of the total MATIC pool deposited with Stader. As soon as you deposit MATIC on the Stader smart contract, you receive newly minted MaticX, based on the exchange rate at the time of staking. As the MATIC rewards get added the value of MaticX increases (w.r.t MATIC).
Stader for Polygon gives you Liquidity through tokenization Ease of staking MaticX is the only solution that allows users to natively stake their MATIC on Polygon, allowing users to take advantage of the low transaction fee
MaticX Security:
Stader on Polygon protocol contracts are dual audited:
Here is the link to the Audit completed by Halborn Here is the link to the Audit completed by Immunebytes Stader's contracts for MaticX are controlled by a multi-sig account (0x91B4139A2FAeaCD4CdbFc3F7B1663F91a54be237) managed by the internal as well as external parties. The confirmation count is 3 out of 5 signatures required $1Mn Bug Bounty on Immunefi Ongoing monitoring and on-chain security tracking by Forta External multi-sig and time-lock drive the staking contract
References
MaticX Chainlink Oracle Price Feed Polygonscan - MaticX address Forum Discussion
03Mismatch analysis
The proposal describes adding MaticX as a new collateral asset on the Polygon USDCv3 Compound III market with specific parameters (supplyCap 6,000,000, borrowCollateralFactor 55%, liquidateCollateralFactor 60%, liquidationFactor 93%) and references the Chainlink oracle at 0x5d37E4b374E6907de8Fc7fb33EE3b0af403C7403 and the MaticX token at 0xfa68fb4628dff1028cfec22b4162fccd0d45efb6. The single decoded action is a cross-chain governance message (sendMessageToChild) to the Polygon FxChild, which is the standard mechanism Compound uses to execute Polygon-market governance actions from Ethereum mainnet. Decoding the embedded calldata reveals an addAsset(...) call referencing exactly the MaticX token address and the same oracle address, with decimals=18 and three factor values whose relative ordering and approximate magnitude align with 55%/60%/93%, plus a supply cap magnitude consistent with 6,000,000 MaticX at 18 decimals. A second embedded call, deployAndUpgradeTo(...), upgrades the Comet proxy implementation — this is routine boilerplate required whenever a new collateral asset is added to an immutable Comet configuration, and is not separately mentioned in the description, which is expected and acceptable per standard practice. No target, value, or parameter mismatches were found. Because exact byte-level decoding of the packed uint64/uint128 values could not be verified to the last digit (only order-of-magnitude and relative ordering were confirmed), confidence is set to medium rather than high, but no discrepancy meeting the reporting bar was identified.
Generated by Kvorum
04Actions
- Target
- 0xfe5e…89a2
- Value
- 0 wei
- Function
- sendMessageToChild(address,bytes)
- Arguments
{ "0": "0x18281dfC4d00905DA1aaA6731414EABa843c468A", "1": "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" }- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| EA0xea6c…3bf7 | For | 330.9K | 50.91% | — | 3y ago |
| 540x54a3…e189 | For | 57.6K | 8.86% | — | 3y ago |
| 1D0x1d29…5d1f | For | 50K | 7.70% | — | 3y ago |
| B40xb49f…7948 | For | 50K | 7.69% | — | 3y ago |
| 070x0703…961b | For | 50K | 7.69% | — | 3y ago |
| 130x13bd…8548 | For | 50K | 7.69% | — | 3y ago |
| B90xb933…8dd1 | For | 27.5K | 4.23% | — | 3y ago |
| 3F0x3fb1…4c8a | For | 25.6K | 3.93% | — | 3y ago |
| 4C0x4c9f…fb01 | Against | 8.2K | 1.26% | — | 3y ago |
| 660x66cd…65f9 | For | 246.7 | 0.04% | — | 3y ago |
| 840x84e3…5a95 | For | 39.6 | 0.01% | — | 3y ago |
| CB0xcb6b…c91a | For | 1.4 | 0.00% | — | 3y ago |
| 8B0x8bc8…7276 | For | 1.1 | 0.00% | — | 3y ago |
| 0C0x0c9f…408b | For | 1 | 0.00% | — | 3y ago |
| 2F0x2f2f…f78a | For | 1 | 0.00% | — | 3y ago |
| E40xe459…e666 | For | 0.7 | 0.00% | — | 3y ago |
| C30xc34a…68c2 | For | 0.7 | 0.00% | — | 3y ago |
| 2C0x2c4e…a477 | For | 0.6 | 0.00% | — | 3y ago |
| 300x3001…c262 | For | 0.3 | 0.00% | — | 3y ago |
| F10xf175…5ff3 | For | 0.3 | 0.00% | — | 3y ago |
| 730x7306…c011 | For | 0.3 | 0.00% | — | 3y ago |
| 340x3496…126b | For | 0.3 | 0.00% | — | 3y ago |
| EE0xee22…8aab | For | 0.2 | 0.00% | — | 3y ago |
| 500x50d2…5318 | For | 0.2 | 0.00% | — | 3y ago |
| 2C0x2cdb…6768 | For | 0.1 | 0.00% | — | 3y ago |
| 260x26fd…d4e8 | For | 0 | 0.00% | — | 3y ago |
| 850x85d0…773f | For | 0 | 0.00% | — | 3y ago |
| 920x92b5…f855 | For | 0 | 0.00% | — | 3y ago |
07Forum
- Listing MaticX on Compound ↗discourse · high confidence
- Gauntlet Recommendations: stMATIC and MaticX listing on Polygon Compound v3 ↗discourse · high confidence
Arguments for
- MaticX has proven successful on other platforms like Aave with $16M+ liquidity across DEXs and maxed-out supply caps, demonstrating strong demand and composability.— Gautam_Stader, Michigan_Blockchain, dcota
- Adding MaticX enables new DeFi strategies on Polygon such as leveraged staking loops and collateral cycling that users currently cannot execute efficiently on Compound.— Gautam_Stader, Michigan_Blockchain, gonemultichain, Rogertdot
- MaticX has strong security credentials including dual audits, a $1M bug bounty, multi-sig controls, and Chainlink price feed integration.— Gautam_Stader, Rogertdot, cylon
- Stader Labs is an established multi-chain protocol with $110M TVL, 50k+ unique stakers, and deep DeFi integrations making MaticX a credible and well-vetted asset.— Gautam_Stader, Aishwary92, Rogertdot
- Adding MaticX to Compound would improve borrow rates for users and increase TVL by capturing undeployed MaticX and creating competitive pressure on other markets.— ansteadm, dcota
- Liquid staking derivatives are gaining traction in DeFi and MaticX's growth trajectory ($67.5M TVL since April 2022 launch) positions it as a valuable long-term collateral asset.— Gautam_Stader, Aishwary92
- MaticX enables native staking on Polygon with low transaction costs, improving user experience compared to alternatives and attracting Polygon-native users to Compound.— Gautam_Stader, Rogertdot
Arguments against
None surfaced.
Unresolved concerns
- Whether adding MaticX to the existing USDC market versus deploying a separate Matic market provides the better user experience tradeoff between leverage strategies and stablecoin borrower convenience.— Michigan_Blockchain
- Whether Compound should prioritize MaticX listing urgently given that MaticX supply on Aave has already grown from $16M to ~$29M since the original proposal, suggesting the window for capturing TVL may be closing.— dcota
Notable participants
- Gautam_StaderProposer; business lead for Stader's MATIC staking product and MaticX.
- GauntletRisk analyst who conducted market risk analysis and published parameter recommendations for MaticX listing.
- cylonOpenZeppelin Security Team reviewer who validated contract addresses, deployment strategy, and price feed health.
- Michigan_BlockchainCommunity member who analyzed major MaticX depositors on Aave and discussed market design options for Compound.
- a_defi_kStader Polygon team member who published token checklist, submitted PR for implementation, and coordinated technical review process.
- ansteadmFuji Finance team member highlighting cross-market benefits and use cases for MaticX collateral on Compound.
- adamEarly supporter expressing approval for MaticX as a new collateral asset for Compound III.
- Aishwary92Community member endorsing MaticX based on liquid staking traction and healthy Balancer liquidity.
- RogertdotCommunity supporter emphasizing Stader's security posture and leverage staking loop potential on Compound.
- dcotaCommunity member noting MaticX's supply growth and advocating for increased collateral capacity on Polygon.
Generated by Kvorum
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