# SupplyCapLSTs
AI summary
This Aave proposal aims to increase the maximum amount of wstETH and stMatic tokens that can be supplied (deposited) on the Aave Polygon V3 market. The current supply caps for these tokens have been nearly or fully reached, preventing new deposits. By raising these limits, the proposal seeks to accommodate growing demand and support the ecosystems built around these tokens.
If passed, users will be able to deposit more wstETH and stMatic on Aave's Polygon V3 market, potentially increasing the total value locked (TVL) on the platform and generating more revenue for Aave through borrowing fees. This benefits users who want to deposit these specific assets and the Aave protocol itself, with no clear losers.
Voting results
🐳 Whale votes
0 votes > 5% VPFull proposal
SupplyCapLSTs
title: "SupplyCapLSTs" author: "Alice Rozengarden (@Rozengarden - Aave-chan initiative)" discussions: "https://governance.aave.com/t/arfc-supply-cap-increase-lsts-on-polygon-v3/14696"
Simple Summary
This proposal seeks to increase the supply cap for the wstETH and stMatic tokens on the AAVE Polygon V3 markets.
This proposal is compatible with the Direct-to-AIP framework.
Motivation
On the AAVE Polygon V3 market, the utilization of the supply cap reached 95% for stMatic and 100% for the wstETH, preventing the deposit of more assets for the latter. By augmentin…