Simple Summary
This publication proposes increasing the GHO Borrow Rate from 3.00% to 4.72%, slightly below the proposed sDAI rate.
Motivation
By increasing the borrow rate to 4.72%, the goal is to improve the peg by reducing the incentive to mint GHO relative to other stable coins. As a result, GHO's growth is expected to slow. This publication prioritises returning GHO to peg over growth.
After implementing this proposal, the community can continue with the current plan, 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: 3.00%
Proposed Borrow Rate: 4.72%
New discounted Borrow Rate: ~3.31%
The discount for stkAave holders remains unchanged at 30%.
The Aave Facilitator Bucket Level is to remain at 35.00M units
References
Copyright
Copyright and related rights waived via CC0.
