I would like to express my sincere gratitude for your time and effort in crafting the recent proposal related to incentivizing the use of Aave on Polygon by lifting the stMATIC supply cap. Your contribution @llamaxyz / @matthewgraham, Gauntlet / @pauljlei and Chaos Labs / @omergoldberg is greatly appreciated.
As you may be aware, Lido’s reWards committee had allocated a budget for Aave incentivization. However, upon further analysis, we discovered that the total value locked of Aave v3 deposits for stMATIC on Polygon had reached 99.99% utilization. Therefore, we are unable to allocate the incentives at this time. We strongly support the proposal as it will enable us to provide rewards to Aave depositors and our token holders and further boost the growth of DeFi ecosystem on Polygon.
We will continue to closely monitor the situation and eagerly await the lifting of the capacity constraint.
Thank you once again for your valuable contributions.