# MaticX Polygon Supply Cap Update
AI summary
This proposal seeks to increase the maximum amount of MaticX, a liquid staking token for Polygon's MATIC cryptocurrency, that can be deposited into Aave's Polygon v3 lending pool. The current limit, or 'Supply Cap', of 38 million MaticX is almost reached. The proposal suggests raising this cap to 50.6 million MaticX to accommodate a large upcoming deposit and support continued growth of yield-generating strategies on Aave.
If passed, Aave will allow more MaticX to be deposited, enabling a large investor to utilize Aave's services and potentially increasing the overall liquidity and activity within the Aave Polygon v3 market. This benefits MaticX holders and Aave users seeking yield, but it also increases Aave DAO's exposure to MaticX.
Voting results
🐳 Whale votes
0 votes > 5% VPFull proposal
MaticX Polygon Supply Cap Update
title: MaticX Polygon Supply Cap Update author: Llama discussions: https://governance.aave.com/t/arfc-polygon-supply-cap-update-07-07-2023/13928
Simple Summary
This publication proposes increasing the MaticX Supply Cap on Polygon v3 from 38.0M units to 50.6M units.
Motivation
The current Supply Cap’s utilisation is hovering around 87.9%, with 4.6M units of MaticX deposit capacity. Discussions with Stader Labs indicates a whale of approximately 10M-15M units is going to deposit on Aave v3. The current supply cap prohibites the full deposit …