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The proposal by Llamaxyz to increase the stMATIC Supply Cap from 25.0M to 30.0M units, due to a surge in stMATIC deposits and user adoption of yield maximising strategy, has received community support. The implementation of the Chainlink Synchronicity Price Adapter (CSPA) for stMATIC is seen as crucial to mitigate potential market risks.
The topic of discussion primarily focuses on a proposal put forth by Llamaxyz to increase the stMATIC Supply Cap from 25.0M to 30.0M units. This proposal has been triggered by a surge in stMATIC deposits from users who are adopting the yield maximising strategy, a method perceived to carry less risk than borrowing less price correlated assets. The proposal further suggests that if the trend of new users depositing stMATIC and looping continues, there lies a potential to gradually increase the Supply Cap.
The proposal has garnered support from several community members. 0xkeyrock.eth has expressed approval, pointing out the evident demand for stMATIC on Aave. Similarly, ChaosLabs has voiced support, highlighting that the recent increase in the supply cap from 21M to 25M has led to substantial borrowing of wMATIC against stMATIC collateral. If the proposal is accepted, the new cap of 30M would represent approximately 58% of the total circulating supply on Polygon. Gauntlet has also given a nod to the proposal, stating that there would be no outsized market risk associated with it, provided the Chainlink Synchronicity Price Adapter (CSPA) is implemented for stMATIC.
In conclusion, the proposal to increase the stMATIC Supply Cap to 30.0M units has been well-received by the community. The increase is seen as a viable response to the growing demand for stMATIC on Aave and the trend of users depositing stMATIC and looping. The implementation of the Chainlink Synchronicity Price Adapter (CSPA) for stMATIC is seen as a necessary measure to mitigate any potential market risks.
Posted 7 months ago
Last reply 7 months ago
Summary updated 2 months ago
Last updated 06/12 00:43