[ARFC] wMATIC Interest Rate Update
Vote Result: YES - Slope1 5%
Rationale
Reducing Slope1 is the correct choice right now given the benefits of facilitating more Emode borrowing against LST collateral, additional revenue to Aave, and adjusting the current risk profile for LSTs to depend less on onchain activity, which has been volatile in recent months. Option 1 at the moment makes more sense given the current borrow rate for wMATIC on Polygon v3 is 5.17% and reducing it to 4.30%, which is much lower, would be a riskier proposition. It would be better to wait and see how the market responds and then reduce the rate down further. Therefore, we will vote YES in favour of OPTION 1.