[ARFC] Gauntlet Recommendations to Lower stMATIC/MaticX non-emode LT/LTV on Polygon v3

Summary

A proposal to make parameter changes on Polygon Aave v3. For more details and analysis, see the full forum post here.

Motivation

Gauntlet recommends lowering stMATIC, MaticX non-emode LT 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

Option	stMATIC LT changes	MaticX LT changes	stMATIC LTV changes	MaticX LTV changes
1	0.65 -> 0.60	0.67 -> 0.62	0.50 -> 0.45	0.58 -> 0.45
2	0.65 -> 0.56	0.67 -> 0.58	0.50 -> 0.40	0.58 -> 0.40
3	no change	no change	no change	no change

Disclaimer: Gauntlet reserves the right to not move forward with any parameter changes recommended in Snapshot polls, if market conditions change meaningfully.

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