Utilizing our LSD supply cap methodology, and given the Community Preference for Supply Cap Limits for LSTs , we support the proposed increase to the MaticX supply cap to 75% of its total on-chain circulating supply.
Asset Overview
MaticX supply cap utilization on Polygon V3 is currently at 96% utilization.
Since MaticX is mainly used as collateral for borrowing WMATIC, with approximately 70% of loans against MaticX being WMATIC, the risk of liquidation is considerably low for these positions.
Chaos Labs Risk Platform
Considering the existing liquidity conditions and user positions for non MaticX/WMATIC holdings, we support a further increase in the caps. A significant portion of these borrowings can be attributed to a specific user, who currently supplies 23.54M MaticX, accounting for nearly 40% of the total MaticX supply. This user has collateralized approximately $32.56M, including $876K in WMATIC, $10.9M in stMATIC, and $20.66M in MaticX. They have borrowed $7.89M, predominantly in USDC.e, resulting in a health score of 2.30.