Hi @ChaosLabs, @Gauntlet
If an LST can have a Supply Cap equal to 75% of supply on that network, then BAL with 538,896.64 units on Polygon could be eligible to have the Supply Cap of 404,172.48 units. The originally suggested 400,000 Supply Cap is beneath this threshold.
The same bridge is used for BAL as stMATIC and MaticX. Although, there is no redemption contract on Ethereum, like there is with the LSTs, there is an abundance of liquidity. Swapping CRV on Ethereum is faster than redeeming MaticX for MATIC. If Aave votes for 75% of circulating Supply Caps on Polygon LSTs, then a similar approach for other assets with better liquidity on Ethereum can be considered.
The below provides context supportive of the broader conversation.
There is 24.50K in deposits and 11,611.81 in borrowings of BAL in Polygon v2. There is currently sufficient room for the entire BAL to migrate from v2 to v3. Although, this can change with market conditions.
