Gho Borrow Rate Update September 2024














Gho Borrow Rate Update September 2024







Author

karpatkey_TokenLogic

Creator

0x57ab7ee15cE5ECacB1aB84EE42D5A9d0d8112922

Simple Summary

This AIP aims to decrease the GHO borrow rate from its current level to 4.25% to enhance its competitiveness in the current market conditions.

Motivation

The DeFi landscape is constantly evolving, and stablecoin protocols must adapt to remain competitive. Recent market analysis indicates:

  • A general decrease in borrowing demand for stablecoins across DeFi platforms.
  • Competing stablecoins offering more attractive rates, potentially drawing users away from GHO.
  • An opportunity to increase GHO's market share by offering more competitive rates.

By reducing the borrow rate, we aim to:

  • Increase the attractiveness of GHO for borrowers
  • Stimulate the growth of GHO's total supply
  • Enhance GHO's position in the stablecoin market

Specification

The GHO borrow rate is to be revised as follows:

DescriptionCurrentProposedReduction
Borrow Rate5.00%4.25%0.75%

References

Copyright

Copyright and related rights waived via CC0.

by BGD Labs