Onboard GHO and Migrate Streams to Prime Instance














Onboard GHO and Migrate Streams to Prime Instance







Author

karpatkey_TokenLogic

Creator

0x57ab7ee15cE5ECacB1aB84EE42D5A9d0d8112922

Simple Summary

This publication proposes the following:

  • Onboarding GHO to the Prime instance of Aave v3 with 3M seed from Collector;
  • Acquire 3M GHO from spot market and send to the Collector
  • Migrate Merit allowance
  • Cancel AGD GHO allowance

Motivation

Onboard GHO Prime Instance with 3M seed from Collector

With the circulating supply nearing 180M and nearly 50M in DEX liquidity on Ethereum, this publication proposes adding GHO to the Prime instance of Aave v3.

Adding GHO to the Prime instance of Aave v3 would provide the DAO with several opportunities:

  • Mint GHO through a Facilitator and deposit it into the Reserve to generate revenue;
  • Enable Aave DAO to earn yield on existing GHO holdings; and,
  • Establish a GHO reserve that provides an organic deposit yield.

Each of these options offers clear advantages for the Aave DAO and GHO users. GHO is to be onboarded as a borrow-only asset, similar to the current configurations of USDC and USDS.

The seeded 3M GHO should be sufficient to sustain two months of Merit, with a sufficient buffer to ensure timely fund withdrawals. Allowance will be migrated from Core to Prime market.

Acquire GHO from spot market and send to the collector

3M GHO is to be acquired from spot market and sent to the Collector.

Within this publication, the Aave Grants DAO GHO Allowance is to be cancelled.

Specification

The below details the parameter configuration of the GHO Reserve on the Prime instance of Aave v3.

ParameterValue
Isolation Modefalse
BorrowableENABLED
Collateral Enabledfalse
Supply Cap (GHO)20,000,000
Borrow Cap (GHO)2,500,000
Debt CeilingUSD 0
LTV0 %
LT0 %
Liquidation Bonus0 %
Liquidation Protocol Fee0 %
Reserve Factor10 %
Base Variable Borrow Rate10.50 %
Variable Slope 13.00 %
Variable Slope 250 %
Uoptimal92 %
FlashloanableENABLED
Siloed BorrowingDISABLED
Borrowable in IsolationDISABLED
Oracle0xD110cac5d8682A3b045D5524a9903E031d70FCCd

GHO is to be included in the sUSDe and ezETH eMode as shown below:

sUSDe eMode

ParameterValueValueValueValue
AssetsUSDeUSDSUSDCGHO
CollateralYesNoNoNo
BorrowableNoYesYesYes
Max LTV90%---
Liquidation Threshold92%---
Liquidation Bonus3.0%---

ezETH eMode

ParameterValueValueValueValue
AssetezETHUSDSUSDCGHO
CollateralYesNoNoNo
BorrowableNoYesYesYes
Max LTV75%---
Liquidation Threshold80%---
Liquidation Bonus7.5%---

This proposal includes swap the following asset for GHO:

Asset Holding
aUSDT (1.5M)
aEthUSDT (0.5M)
aEthUSDC (1.0M)

Cancel Aave Grants DAO GHO Allowance.

Migrate Merit allowance from Core to Prime market.

References

Copyright

Copyright and related rights waived via CC0.

by BGD Labs