# Chaos Labs Risk Stewards - Increase MaticX Supply Cap on V3 Polygon - 03.11.24 **URL:** \ **Category:** Governance\ **Created:** [March 11, 2024, 10:31pm UTC](https://governance.aave.com/t/chaos-labs-risk-stewards-increase-maticx-supply-cap-on-v3-polygon-03-11-24/16920 "2024-03-11T22:31:49Z")\ **Posts on this page:** 3\ **Page:** 1
**Author:** ![ChaosLabs](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/chaoslabs/32/6850_2.png) [@ChaosLabs](https://governance.aave.com/u/ChaosLabs)\ **Post date:** [March 11, 2024, 10:31pm UTC](https://governance.aave.com/t/chaos-labs-risk-stewards-increase-maticx-supply-cap-on-v3-polygon-03-11-24/16920/1 "2024-03-11T22:31:49Z")
# Summary A proposal to increase MaticX Supply Caps on Polygon V3. The recommendations below were made utilizing Chaos’ Supply Cap methodologies and after analyzing user positions for each asset. # Motivation The Supply Cap for MaticX on Polygon V3 is currently at 93% utilization, indicating heightened demand. ![Screenshot 2024-03-11 at 19.28.56](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/f/f1032542f15e3149cffe24310eec795c40c2c538.png) Utilizing our supply cap methodology, we have determined that the current state of the asset on Polygon allows for an increase in the Supply Cap of MaticX, to 82.5M. # Borrow Distribution Analysis There are currently a total of $10M of non-MATIC-denominated assets borrowed against $90M worth of MaticX on Aave Polygon V3. ![Screenshot 2024-03-11 at 19.13.07](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/2/2e548e336764ebd65031a3036faddcd3997a2a0f.png) Excluding Matic-denominated debt assets, the current percentage of debt against MaticX collateral stands at approximately 11%, representing an upward trend over the past year. ![Screenshot 2024-03-11 at 19.10.36](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/2/2cae1d4c4b236325938dbcd7373a4f0a8fec86af.png) The increase in debt against MaticX collateral can be attributed to a single large and healthy position, accounting for 40% of the total supply. This position is responsible for backing 90% of all non-MATIC-denominated debt secured by MaticX. ![Screenshot 2024-03-11 at 19.26.28](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/f/fccba59379a0fb34f10aecb05d6dea082ac82b6c.png) Given the limited on-chain MATIC liquidity, the distribution of MaticX debt, and overall utilization on Aave, we propose a slight increase in the Supply Cap from 75M to 82.5M. # Recommendations ![Screen Shot 2024-03-11 at 23.30.52](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/c/cd4e5ccb813c20b154ee0c23c3b880705501c47e.png) # Next Steps We will move forward and implement these updates via the Risk Steward process. # Disclaimer Chaos Labs has not been compensated by any third party for publishing this ARFC. # Copyright Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain) ---
**Author:** ![ChaosLabs](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/chaoslabs/32/6850_2.png) [@ChaosLabs](https://governance.aave.com/u/ChaosLabs)\ **Post date:** [March 12, 2024, 5:49pm UTC](https://governance.aave.com/t/chaos-labs-risk-stewards-increase-maticx-supply-cap-on-v3-polygon-03-11-24/16920/2 "2024-03-12T17:49:53Z")
We have created and executed the tx for the proposal above ---
**Author:** ![system](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/e/e11637c36f45ffa158f2146f5c19438d46e0824d.svg) [@system](https://governance.aave.com/u/system)\ **Post date:** [April 11, 2024, 5:49pm UTC](https://governance.aave.com/t/chaos-labs-risk-stewards-increase-maticx-supply-cap-on-v3-polygon-03-11-24/16920/3 "2024-04-11T17:49:58Z")
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