Aave

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title: Gauntlet Recommendations to Lower stMATIC/MaticX non-emode LT/LTV on Polygon v3 author: Paul Lei, Watson Fu, Nick Del Zingaro, Walter Li, Jonathan Reem, Nick Cannon, Sarah Chen, Dana Tung discussions: https://governance.aave.com/t/arfc-gauntlet-recommendation-to-lower-stmatic-maticx-non-emode-lt/14859

Summary

Gauntlet recommends lowering stMATIC, MaticX non-emode LT/LTV on Polygon v3 to improve the risk profile associated with MATIC LSTs.

Reducing MATIC LST non-emode LT to lower borrowing power can help combat the following.

• Risks of reduced WMATIC supply in the future, which may cause long-term growth risk for Polygon v3
• Risks of reduced capacity for recursive LST - WMATIC borrowing
• Risks associated with increased stablecoin borrowing against LST collateral, amidst decreasing MATIC LST liquidity

Specification

Chain	Asset	Action	Current Value	New Value
Polygon	stMATIC	Lower non-emode LT	65%	60%
Polygon	stMATIC	Lower non-emode LTV	50%	45%
Polygon	MaticX	Lower non-emode LT	67%	62%
Polygon	MaticX	Lower non-emode LTV	58%	45%

Implementation

The proposal implements changes on Polygon v3 using the following pre-deployed payloads:

• Polygon

References

• Discussion: https://governance.aave.com/t/arfc-gauntlet-recommendation-to-lower-stmatic-maticx-non-emode-lt/14859
• Snapshot: https://snapshot.org/#/aave.eth/proposal/0x151df3127d187c203ff3a975d8ab9e34493d77edf67ec6884dc086d5aea9ce89

Disclaimer

Gauntlet has not received any compensation from any third-party in exchange for recommending any of the actions contained in this proposal.

Copyright

Copyright and related rights waived via CC0.

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