Aave

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title: “SupplyCapLSTs” author: “Alice Rozengarden (@Rozengarden - Aave-chan initiative)” discussions: “https://governance.aave.com/t/arfc-supply-cap-increase-lsts-on-polygon-v3/14696”

Simple Summary

This proposal seeks to increase the supply cap for the wstETH and stMatic tokens on the AAVE Polygon V3 markets.

This proposal is compatible with the Direct-to-AIP framework.

Motivation

On the AAVE Polygon V3 market, the utilization of the supply cap reached 95% for stMatic and 100% for the wstETH, preventing the deposit of more assets for the latter. By augmenting those caps we would be helping the ecosystems that have been built around those products and increasing the user experience of the AAVE users, resulting in higher TVL and protocol revenue through the borrowing of WMatic and WETH.

The total supplies of those assets increased recently, which allows the adjustement of those caps while staying below 75% of the total supplies.

Specification

The following parameters would be modified for the stMatic and wstETH tokens:

Token	Current supply cap	Proposed supply cap	Increase	Total Supply	Total Supply (%)
stMatic Polygon V3	57M	66M	~16%	88.9M	75%
wstETH Polygon V3	3450	4125	~19%	5.5k	75%

Contract:

• stMatic Polygon: 0x3a58a54c066fdc0f2d55fc9c89f0415c92ebf3c4
• wstETH Polygon: 0x03b54a6e9a984069379fae1a4fc4dbae93b3bccd

References

• Implementation: Polygon
• Tests: Polygon
• [Snapshot](No snapshot for Direct-to-AIP)
• Discussion

Copyright

Copyright and related rights waived via CC0.