ARFC: Gauntlet Supply Cap Updates for WMATIC on Polygon Aave V3 2023-07-28


Gauntlet recommends supply cap changes for one asset on Polygon Aave V3.

Per Gauntlet’s supply and borrow cap methodology, we recommend increasing WMATIC supply cap to 120,000,000.


The supply cap for WMATIC surpassed the 75% threshold to 76% usage on Polygon Aave V3. Based on the asset’s market ADV and liquidity depth, our Methodology supports increasing the cap to 120M ($85M).


Polygon Aave V3

Parameter Current Value Recommended Value
WMATIC Supply Cap 105,000,000 120,000,000

Next Steps

Once we receive feedback from @ChaosLabs on the above recommendations, we will move forward with Risk Steward actions.

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We support the proposed update

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We’ve queued up the transaction to be executed via Risk Steward.

We’ve observed multiple withdrawals of WMATIC over the past few days, resulting in a current supply of approximately 66.69M WMATIC amounting to less than 64% of the supply cap. Considering this level of utilization, we suggest waiting with the execution of this proposal.

Given the WMATIC supply cap utilization has decreased to 61%, we have rejected the risk steward transaction. Once @ChaosLabs signs and executes the rejection, the risk steward transaction will be canceled.

The rejection transaction has been executed. The risk steward transaction has been canceled.