Topic: Add MaticX to Compound
Hi Everyone, I’m Gautam, business lead for Stader’s MATIC staking product, MaticX.
Below is a proposal for adding MaticX as a collateral asset on Compound. Using MaticX as a collateral asset has added significant value on other lending platforms like Aave v3 (Polygon) with supply caps being reached and a popular leveraged staking strategy increasing utilization rates for MATIC. For Compound, MaticX offers a good collateral option because of its extensive use and composability on Polygon.
Background - Stader Labs
Stader is a leading multi-chain liquid staking protocol that is currently live on 6 chains including Polygon and is soon going live on Ethereum.
- ~US $110 Mn in TVL
- 50k+ unique wallets staking
Background - MaticX
Stader’s staking solution for Polygon is MaticX, a liquid staking solution for MATIC. Stader lets users earn MATIC staking rewards and also enables users to participate in other Defi protocols using MaticX while accruing rewards.
MaticX is a token that represents your share of the total MATIC pool deposited with Stader. As soon as you deposit MATIC on the Stader smart contract, you receive newly minted MaticX, based on the exchange rate at the time of staking. As the MATIC rewards get added the value of MaticX increases (w.r.t MATIC) To illustrate the above explanation, here is a video.
Stader for Polygon gives you
- Liquidity through tokenization: Users can participate in Defi using the liquid token.
- Ease of staking: User-centric design of Dapp to make staking seamless for users
- MaticX is the only solution that allows users to natively stake their MATIC on Polygon, allowing users to take advantage of the low transaction fee
More technical details are available here: Stader for Polygon - MaticX FAQs
MaticX currently has a TVL of ~67.5M MATIC and ~$16M in MaticX supplied on AAVE (supply cap reached).
There is also a combined liquidity of ~$16M in MaticX based liquidity pools on leading DEXs split as below:
- Balancer: ~$11.1M
- QuickSwap: ~$3.4M
- MeshSwap: ~$1.4M
Also, the current rewards on the primary MaticX LP on Balancer are ~9.5% , about 2x+ those of comparable LPs, thus the size of the LP is expected to grow significantly
MaticX Token Address:
- MaticX address on Ethereum is 0xf03a7eb46d01d9ecaa104558c732cf82f6b6b645
- MaticX address on Polygon is 0xfa68fb4628dff1028cfec22b4162fccd0d45efb6
- Stader on Polygon protocol contracts are dual audited:
- Here is the link to the Audit completed by Halborn
- Here is the link to the Audit completed by Immunebytes
- Stader’s contracts for MaticX are controlled by a multi-sig account (0x91B4139A2FAeaCD4CdbFc3F7B1663F91a54be237) managed by the internal as well as external parties. The confirmation count is 3 out of 5 signatures required
- $1Mn Bug Bounty on Immunefi.
- Ongoing monitoring and on-chain security tracking by Forta
- External multi-sig and time-lock for staking contract
MaticX - Key Reasons to List on Compound
- MaticX is deeply integrated with DeFI projects such as Aave and Balancer.
- There is ~$16M liquidity in MaticX based pools cross leading DEXs.
- 17.2M MaticX supplied on Aave - current supply cap is exhausted.
- In order to integrate it into any lending market, MaticX has a Chainlink Oracle calculated price feed
- MaticX TVL has grown to ~$67M steadily ever since its launch in Apr’22.
- There is about ~15mn MATICX on Polygon that haven’t been deployed on DeFi yet, which offers a large TVL opportunity for Compound
Source: https://dune.com/stader_labs/MaticX-metrics, polygonscan.com
Liquidity - MaticX currently has a TVL of $67.6M and total liquidity of ~$16M in MaticX based liquidity pools on ecosystem DEXs with Balancer being the lead along with QuickSwap & MeshSwap.
My proposal is to set the parameters for MaticX on Compound as
- Maximum LTV:50%,
- Liquidation threshold of 65%
- Liquidation penalty: 10%
For reference current parameters for MaticX on Aave v3 Polygon market are:
- For all assets: Max LTV: 58%; Liquidation threshold: 67%; Liquidation Penalty: 10%
- E-Mode (enabled for MATIC): Max LTV: 92.5%; Liquidation threshold: 95%; Liquidation Penalty: 1%
Your support and consideration of our proposal is greatly appreciated!
I look forward to hearing from you soon, and I am happy to provide additional resources and support to the community if needed.