Futher Increase GHO Borrow Rate

Simple Summary

This ARFC proposes a further increase in the GHO borrow rate by 50 basis points (bps), raising it from 2.5% to 3%.

Motivation

The Aave community has previously recognized the importance of adjusting the GHO borrow rate to maintain the stability and health of the protocol. The motivations for this proposal are:

1. Strengthening the GHO Peg: The prior adjustment to the GHO borrow rate resulted in a stronger GHO peg. An additional increase is anticipated to further bolster the peg and get closer to the target value.
2. Enhancing GHO Revenue: By increasing the borrow rate, the protocol is expected to generate additional revenue from GHO borrowings.
3. Coordinated Effort: This proposal aligns with other initiatives, including the GHO buy program set of AIPs, as part of a coordinated effort to support the GHO peg.

The discount for stkAave holders remains unchanged at 30%.

This proposal also greenlights the ACI for a direct-to-AIP process for 50 bps increments every 30 days, as long as the GHO peg is outside 0,995<>1,005 monthly average price range, up to 5.5% borrow rate.

Specification

• Asset: GHO
• Contract Address: 0x40D16FC0246aD3160Ccc09B8D0D3A2cD28aE6C2f
• Current Borrow Rate: 2.5%
• Proposed Borrow Rate: 3%
• New discounted Borrow Rate: ~2.1%

References

• Implementation: Ethereum
• Tests: Ethereum
• Snapshot
• Discussion

Copyright

Copyright and related rights waived via CC0.