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Gauntlet recommendation to lower stMATIC, MaticX non-emode LT, pt 2


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Gauntlet

Gauntlet

ID 377

ID 377

Proposed on: Nov 20th, 2023

Proposed on: Nov 20th, 2023

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Proposal


title: "Gauntlet recommendation to lower stMATIC, MaticX non-emode LT, pt 2" author: "Gauntlet" discussions: "https://governance.aave.com/t/arfc-gauntlet-recommendation-to-lower-stmatic-maticx-non-emode-lt-pt-2/15314"

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

AssetParameterCurrent ValueRecommended Value
stMATICLiquidationThreshold60%56%
MaticXLiquidationThreshold62%58%

References

Disclaimer

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

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Copyright

Copyright and related rights waived via CC0.

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