Inflows of stMATIC has a strong upwards trend overall with the occasional large holder depositing and providing a further boos. The chart below shows Supply Cap utilisation over time.
Looking at how this affects wMATIC demand, there is a net inflow of wMATIC over time. However, this net inflow is not correlated with a net outflow from v2 into v3.
To sustain the ability to attract wMATIC deposits, the Supply Caps of stMATIC and MaticX need to enable users too deposit an LST and enter into the yield maximising strategy. Incentives from Lido and others, will likely stop when the Supply Cap prevents further product adoption for the respective community. This will adversely affect Aave’s ability to attract users and put those communities who build yield products on Aave in a difficult situation as the structured products will not be able to rebalance or improve there health factor with additional LST deposits.