Gauntlet Recommendation
After evaluating MaticX’s potential for price manipulation, DEX liquidity, and circulating supply, we recommend a conservative supply cap of 6.6M and an aggressive cap of 11.1M.
Gauntlet agrees to use the discounted MATIC liquidity and volume for cap calculations because MaticX is redeemable. The limiting factor for the cap recommendation is the MaticX circulating supply on the Polygon network. We recommend against having more than 50% of the circulating supply being deposited to Aave, even though MaticX can be migrated from Ethereum. If the community believes that using the 50% circulating supply as the upper bound for the LSD supply cap is too conservative, they may vote so, but this would signal a preference towards growth over risk.