[ARFC] Polygon v3 Supply Cap Update 2023.05.21
Vote Result: 40M UNITS - CHAOS LABS
Rationale
Small, incremental increases in supply caps for stMATIC and other assets have clearly been filled up quickly, leading to governance overhead and a significantly worse user experience for depositors, limiting the growth of Aave and of revenue sources to the protocol. We have already implemented conservative approaches in the past that have shown to be too conservative, and it is necessary to be more risk-on to meet the demand for depositing stMATIC. Increasing the supply cap to only 32M is too low and will not fulfil demand - there is a need to balance risk with user experience and demand, and increasing the cap to only 32M will lead to imbalance. Lastly, while Gauntlet is not in favour of the increases, Chaos Labs is, which gives us confidence especially given the stress tests conducted simulating depeg scenarios.
Therefore, we will vote YES in favour of the 40M units option presented by Chaos Labs.