QIP-247: Deprecate stMATIC Collateral on Polygon PoS

QIP247 Deprecate stMATIC Collateral on Polygon PoS

Summary

This proposal aims to deprecate all stMATIC-backed MAI loans both on QiDao and Manhattan deployments on Polygon PoS, following the official sunsetting of the Lido staking solutions on Polygon.

As of now, only 9,165 MAI is backed by approximately $21,245 in stMATIC, so the DAO’s exposure is minimal. However, full deprecation requires all existing MAI loans backed by stMATIC to be repaid.

To accelerate this process, the proposal recommends adjusting both the Interest Rate (IR) and the Minimum Collateral-to-Debt Ratio (CDR) until repayment occurs. Other parameters such as MaxDebt or GainRatio may also be updated to fully complete the deprecation.

Motivation

In late 2024, Lido announced the sunset of its Polygon staking solutions. Since then, usage of stMATIC as collateral has steadily declined, with many users voluntarily repaying and migrating their loans.

However, a few positions remain open, and the DAO must now take final steps to fully discontinue stMATIC from the protocol’s approved basket of collaterals.

It's worth mentioning that ahead of this proposal, existing debt ceilings have already been burned by the QiDao Guardians, preventing the opening of new loans using stMATIC.

Rationale

While Lido has ended UI and support for stMATIC as of June 16, 2025, users can still unstake their tokens manually via explorer tools:

“June 16, 2025: Lido's Frontend support concludes. Withdrawals will only be possible via explorer tools. See here for a full guide to unstaking your stMATIC via explorer tools (Etherscan): Unstaking Guide”

Given these circumstances and the minimal exposure there is no immediate risk to user funds or protocol stability. However, the combination of reduced liquidity, pricing uncertainty, and lack of future technical support justify completing the deprecation process.

Configurable values

• Current Interest Rate: 5%
  • Interest Rate upon proposal approval: 100%
• Current min. CDR: 135%
  • Min. CDR upon proposal approval: 200%
  • Min. CDR three days after approval: 230%
  • Min. CDR five days after approval: 250%
  • Min CDR one week after approval: 10000%
• MaxDebt: 500k
  • MaxDebt upon loans repayment: 0
• Gain Ratio: Adjusted to optimize liquidation thresholds if necessary.