Add stMATIC as Collateral to USDCv3 Polygon Market
01Summary
Proposal to add stMATIC (Lido's liquid staking token for MATIC) as collateral to Compound's USDCv3 Polygon market. stMATIC would have a supply cap of 8M, 60% borrow collateral factor, 65% liquidation collateral factor, and 7% liquidation factor. stMATIC has 135M+ MATIC TVL and is widely integrated across DeFi platforms.
- Type
- protocol addition
Key changes
- Add stMATIC as collateral asset to USDCv3 Polygon market with supply cap of 8,000,000 stMATIC(high)
- Set borrowCollateralFactor to 60% for stMATIC(high)
- Set liquidateCollateralFactor to 65% for stMATIC(high)
- Set liquidationFactor to 7% for stMATIC(medium)
- Enable users to leverage stMATIC on Compound while earning staking rewards(medium)
Notable concerns
- stMATIC is controlled by Lido multi-sig managed by Shardlabs, Lido and Polygon
- Dependency on Chainlink oracle price feed for stMATIC
- 40M+ undepleted stMATIC represents execution risk if market absorbs significant new collateral
Generated by Kvorum
02Description
Add stMATIC as Collateral to USDCv3 Polygon Market
Using stMATIC 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, stMATIC offers a good collateral option because of its extensive use and composability on Polygon.
stMATIC - Key Reasons to List on Compound
stMATIC is deeply integrated with DeFI projects such as Aave and Balancer. stMATIC TVL has grown to 135M+ MATIC steadily ever since its launch. There is 40M+ stMATIC on Polygon that haven't been deployed on DeFi yet, which offers a large TVL opportunity for Compound
Proposed Parameters
Liquidity - stMATIC currently has a TVL of 135M+ MATIC staked. This proposal is to set the parameters for stMATIC as below based on Gauntlet's recommendations supplyCap: 8,000,000 borrowCollateralFactor: 60% liquidateCollateralFactor: 65% liquidationFactor: 7% The proposal is to be made from this pull request
Background - stMATIC
Lido on Polygon staking solution for Polygon is stMATIC, a liquid staking solution for MATIC. Lido on Polygon lets users earn MATIC staking rewards and also enables users to participate in other Defi protocols using stMATIC while accruing rewards. stMATIC is a token that represents your share of the total MATIC pool deposited with Lido on Polygon. As soon as you deposit MATIC on the Lido on Polygon smart contract, you receive newly minted stMATIC, based on the exchange rate at the time of staking. As the MATIC rewards get added the value of stMATIC increases.
Lido on Polygon for Polygon gives you Liquidity through tokenization Ease of staking stMATIC is the only solution that allows users to natively stake their MATIC on Polygon, allowing users to take advantage of the low transaction fee
stMATIC Security:
Lido on Polygon protocol contracts are dual audited:
Here is the link to the Audits Lido on Polygon contracts for stMATIC are controlled by a multi-sig account (0xd65Fa54F8DF43064dfd8dDF223A446fc638800A9) managed by (Shardlabs, Lido and Polygon). The Lido on Polygon bug bounty program on Immunefi
References
stMATIC Chainlink Oracle Price Feed Polygonscan - stMATIC address Forum Discussion
03Mismatch analysis
A calldata-vs-description analysis is not generated yet. Review the decoded actions →
04Actions
- Target
- 0xfe5e…89a2
- Value
- 0 wei
- Function
- sendMessageToChild(address,bytes)
- Arguments
{ "0": "0x18281dfC4d00905DA1aaA6731414EABa843c468A", "1": "0x000000000000000000000000000000000000000000000000000000000000008000000000000000000000000000000000000000000000000000000000000000e000000000000000000000000000000000000000000000000000000000000001400000000000000000000000000000000000000000000000000000000000000280000000000000000000000000000000000000000000000000000000000000000200000000000000000000000083e0f742cacbe66349e3701b171ee2487a26e738000000000000000000000000d712ace4ca490d4f3e92992ecf3de12251b975f90000000000000000000000000000000000000000000000000000000000000002000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000002000000000000000000000000000000000000000000000000000000000000004000000000000000000000000000000000000000000000000000000000000000c00000000000000000000000000000000000000000000000000000000000000046616464417373657428616464726573732c28616464726573732c616464726573732c75696e74382c75696e7436342c75696e7436342c75696e7436342c75696e743132382929000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000236465706c6f79416e6455706772616465546f28616464726573732c616464726573732900000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000002000000000000000000000000000000000000000000000000000000000000004000000000000000000000000000000000000000000000000000000000000001600000000000000000000000000000000000000000000000000000000000000100000000000000000000000000f25212e676d1f7f89cd72ffee66158f5412464450000000000000000000000003a58a54c066fdc0f2d55fc9c89f0415c92ebf3c400000000000000000000000097371df4492605486e23da797fa68e55fc38a13f00000000000000000000000000000000000000000000000000000000000000120000000000000000000000000000000000000000000000000853a0d2313c00000000000000000000000000000000000000000000000000000905438e600100000000000000000000000000000000000000000000000000000ce80612991d0000000000000000000000000000000000000000000000069e10de76676d08000000000000000000000000000000000000000000000000000000000000000000004000000000000000000000000083e0f742cacbe66349e3701b171ee2487a26e738000000000000000000000000f25212e676d1f7f89cd72ffee66158f541246445" }- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| EA0xea6c…3bf7 | For | 331K | 0.00% | — | 3y ago |
| 8D0x8d07…a265 | For | 70K | 0.00% | — | 3y ago |
| 680x683a…6c02 | For | 60.6K | 0.00% | — | 3y ago |
| 1D0x1d29…5d1f | For | 50K | 0.00% | — | 3y ago |
| B40xb49f…7948 | For | 50K | 0.00% | — | 3y ago |
| 070x0703…961b | For | 50K | 0.00% | — | 3y ago |
| 130x13bd…8548 | For | 50K | 0.00% | — | 3y ago |
| B90xb933…8dd1 | For | 27.5K | 0.00% | — | 3y ago |
| 3F0x3fb1…4c8a | For | 25.6K | 0.00% | — | 3y ago |
| 2F0x2fd6…ba43 | For | 20K | 0.00% | — | 3y ago |
| 8B0x8bc8…7276 | For | 1.1 | 0.00% | — | 3y ago |
| 2D0x2df2…b98a | For | 1.1 | 0.00% | — | 3y ago |
| 010x0151…c3b9 | For | 1.1 | 0.00% | — | 3y ago |
| 210x2126…989d | For | 1 | 0.00% | — | 3y ago |
| E40xe459…e666 | For | 0.7 | 0.00% | — | 3y ago |
| 2F0x2f2f…f78a | For | 0.5 | 0.00% | — | 3y ago |
| 100x1084…3695 | For | 0.1 | 0.00% | — | 3y ago |
| 280x28ac…e63a | For | 0.1 | 0.00% | — | 3y ago |
| D30xd394…c42a | For | 0.1 | 0.00% | — | 3y ago |
| D80xd828…d0b1 | For | 0.1 | 0.00% | — | 3y ago |
| 350x3538…4ec6 | For | 0 | 0.00% | — | 3y ago |
| EE0xee3b…4d02 | For | 0 | 0.00% | — | 3y ago |
| 9A0x9a9d…7481 | For | 0 | 0.00% | — | 3y ago |
| B80xb89a…ea6b | For | 0 | 0.00% | — | 3y ago |
| 5D0x5d39…8551 | For | 0 | 0.00% | — | 3y ago |
07Forum
- Gauntlet Recommendations: stMATIC and MaticX listing on Polygon Compound v3 ↗discourse · high confidence
- stMATIC Compound Listing ↗discourse · high confidence
Arguments for
- Adding stMATIC and MaticX to Polygon Compound v3 aligns with community interest and addresses demand for these assets.— Gauntlet
- Aggressive parameters would enhance Compound's competitiveness against AAVE, which offers 50-58% LTV on these same assets.— Michigan_Blockchain
- stMATIC and MaticX have sufficient DEX liquidity to support the proposed collateral caps and liquidation parameters.— Gauntlet
Arguments against
None surfaced.
Unresolved concerns
- Whether conservative or aggressive parameter settings better balance risk tolerance and market competitiveness remains a community choice.— Gauntlet
- MaticX has relatively worse liquidity conditions than stMATIC, creating differentiated risk between the two assets.— Gauntlet
Notable participants
- GauntletProposal author providing risk analysis and conservative/aggressive parameter recommendations for both assets.
- Michigan_BlockchainAdvocate for aggressive parameters and competitive positioning against AAVE.
- ignaciorsg.ethVoter supporting the conservative approach on behalf of Avantgarde Finance.
Generated by Kvorum
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