wMATIC Interest Rate Update

Simple Summary

This AIP will reduce the wMATIC Slope1 parameters from 6.10% to 5.00% Aave v3 Polygon.

Motivation

This AIP will reduce the slope1 paramter to 5.00%. This is higher than the current MaticX and stMATIC yield rate whilst marginally lower than the existing borrow rate.

v3 wMATIC Borrow Rate: 5.96% APY MaticX APR: 4.68% stMATIC APR: 4.30%

Upon implementing this AIP, the borrow rate is anticipated to decrease to below 5.00%, current utilization is less than the Uoptimal value. The demand from yield-maximizing strategies is expected to create consistent demand for borrowing wMATIC. Over time, this is projected to establish a floor under wMATIC borrow rates.

Specification

Revise the interest rate strategy as per below:

wMATIC Address: 0x0d500B1d8E8eF31E21C99d1Db9A6444d3ADf1270

variableRateSlope1: From 6.10% to 5.00%

All other parameters remain the same as the existing interest rate startegy.

References

• Implementation: AaveV3Polygon
• Tests: AaveV3Polygon
• Snapshot
• Discussion

Disclaimer

TokenLogic receives no compensation beyond Aave protocol for the creation of this proposal. TokenLogic is a delegate within the Aave ecosystem.

Copyright

Copyright and related rights waived via CC0.