We propose to list stMATIC on 0VIX.
This comprises of the following vote:
- Whether to list stMATIC on 0VIX Protocol as one of the available assets for lending and borrowing.
0VIX recently added MaticX with great success, having a market size of $860k and a utilization rate of 45%. The stMATIC token is another liquid staking derivative of MATIC managed by the Lido DAO. They currently hold more than $7 Billion in total value locked with more than 200k stakers managing ~30% of all the ETH staked on Ethereum mainnet and more.
By adding stMATIC to 0VIX, the protocol diversifies the risk on liquid staking derivatives while opening more venues for the leveraged staked MATIC strategy.
The main depeg risk for stMATIC would result from a slashing penalty incurred by its validators. Given the extensive validator set offered by the LIDO DAO, a majority of validators would need to be slashed throughout a 3-day epoch for a sufficient depeg event to take place. Given the permissioned and centralized nature of Polygon validators we deem this to be a low-probability event as it would amount to a structural failure of the Polygon blockchain as a whole and, as such, should be implicitly priced-in by a DeFi user engaging with our protocol.
Risk profile and Liquidity is similar as MaticX, so we can use the same risk parameters:
stMATIC LTV on 0VIX: 60%
[following content has been taken from Jakov of Shard Labs 11]
Lido is a DAO governed liquid staking protocol for the Polygon PoS chain. It allows users to stake their MATIC tokens on the Ethereum mainnet and immediately get the representation of their share in the form of stMATIC token without maintaining staking infrastructure. Users will get staking rewards and still control and utilize their stMATIC tokens in secondary markets on Ethereum mainnet and Polygon.
MATIC tokens will be delegated across validators that are registered and accepted by the DAO inside Lido protocol.
Node operators don’t have direct access to the delegated assets. They are just providing infrastructure and getting rewards in return. Assets are controlled by Lido core smart contracts exclusively.
The goal is to help with Polygon decentralization and integrate stMATIC with the variety of protocols and DeFi applications on Ethereum mainnet and Polygon PoS chain.
In short, Lido on Polygon is enabling users to:
- Stake their MATIC tokens in a decentralized and secure way
- Use their stMATIC on the secondary market
- Do all of the above simply and easily with a click of a button on the UI
Additional value Lido can bring to the Polygon ecosystem is decentralizing stake distribution, and getting more capital efficiency in the ecosystem — enabling staked MATIC to participate in DeFi on Polygon.
Quantstamp, MixBytes and Sigmaprime. Find links here: GitHub - lidofinance/audits
The options with the most votes will be adopted.
- 7 days
- Accept the proposal: Yes
- Needs further discussion