Add MATIC as collateral on Aave V2

Rationale: Add MATIC as collateral on AAVE V2 market.

Reference: As detailed out in the proposal on https://governance.aave.com/t/proposal-add-support-for-matic-token/3350, it would be a great utility for MATIC holders which are increasing by the day.

Overview: MATIC is the ecosystem token of Polygon Network (previously Matic) - a 100% EVM compatible scaling solution with current TVL of more than $5B and 500+ dapps deployed across DeFi, NFT, Gaming and DAO space. With the recent rebranding Matic has now expanded in scope and vision and have transformed into Polygon with the aim of becoming an L2 aggregator - thereby providing a developer with all L2 solutions - POS/Plasma chain (mainnet launched April 2020), zk and Optimistic Rollups and Validum chains. The MATIC token lies at the heart of the Polygon ecosystem with multiple use-cases. Primarily the MATIC token is used for paying gas fees on the Polygon network. It runs the ecosystem, supporting top Dapps. Additionally you can participate in the Proof-of-Stake consensus of the blockchain as a validator node and earn 12-14% APY in MATIC tokens.

Positioning of MATIC token within the AAVE ecosystem: Matic token is currently one of the most liquid altcoins on CEXs with daily spot volumes over 100M. The recent Coinbase listing was another achievement - further positioning MATIC as one of the premier altcoins.

Secondly, the whole NFT/Gaming boom has definitely made dapps like Decentraland, Decentral Games, Aavegotchi, Cometh, Polymarket, Quickswap household names in the space.

MATIC can play a unique role in the AAVE ecosystem in following ways - Lending MATIC Since MATIC is primarily a CEX traded coin, most of the speculation and activity remains confined there. Holders don’t have an additional source of revenue other than price speculation. With MATIC as a collateral on AAVE, holders will rush to seek yields, in turn boosting AAVE’s liquidity. Borrow MATIC In today’s high gas fees environment Ether is becoming scarcer by the day. DEX traders can depost Ether on Aave and can borrow Matic on lucrative interest rates. The borrowed Matic can be then provided in single pool dexes like Bancor on L1 and QuickSwap/ComethSwap on L2 to capture liquidity pools of a growing DeFi ecosystem on Polygon.

Risk: MATIC’s Overall Risk is B+ MATIC Smart Contract Risk: B MATIC Counterparty Risk: B+ MATIC Market Risk: C

Risk Parameters LTV 25% Liquidation Threshold 45% Liquidation Bonus 10% Reserve Factor 20%

Contracts date of deployments - 20 April 2019 Number of transactions - 1,689,469 Number of holders for tokens - 136,013 (on-chain)