Blockchain at Michigan Delegate Platform

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[ARFC] Polygon Supply Cap Update 07.07.2023

Our Vote: Abstain

Rationale:

  1. We have indicated our more conservative preference for the 50% LST supply cap at the Community Preference for Supply Cap Limits for LSTs vote.

  2. Since 75% is the maximum supply cap, the actual supply cap of each asset should be assessed individually, but there’s very little analysis in this forum discussion. In the unlikely event of a liquidity crunch or secondary market price deviation, what would be the potential impact on Aave?