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

Summary

A proposal to make parameter changes on the Aave Polygon V3 market. For more details, see the full forum post here.

Motivation

Following up on our previous recommendations on lowering stMATIC / MaticX non-emode LT, these recommendations are geared towards the following:

• 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

stMATIC / MaticX non-emode LT / LTV on Polygon v3

• Option 1
  • Decrease stMATIC LT from 60% to 50%
  • Decrease MaticX LT from 62% to 50%
• Option 2
  • Decrease stMATIC LT from 60% to 56%
  • Decrease MaticX LT from 62% to 58%

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

By approving this proposal, you agree that any services provided by Gauntlet shall be governed by the terms of service available at gauntlet.network/tos.