GHO Stewards + Borrow Rate Update
GHO Stewards + Borrow Rate Update
Author
karpatkey_TokenLogic ACI ChaosLabs
Creator
0x57ab7ee15cE5ECacB1aB84EE42D5A9d0d8112922
Simple Summary
In response to recent market events, this AIP increases the GHO Borrow Rate to 13.00%.
Motivation
In response to recent stable coin Borrow Rates increasing and Maker DAO's recently proposed changes, this AIP amends the current GHO Interest Rate strategy.
This AIP is expected to enable GHO to continue growing whilst maintaining peg stability. Upon implementation the Borrow Rate arbitrage opportunity with be meaningfully reduced.
Specification
| Description | Current (%) | Proposed (%) |
|---|---|---|
| Non Discounted Borrow Rate | 7.48% | 13.00% |
| stkAAVE Discount | 30.00% | 30.00% (no change) |
| Discounted Borrow Rate | 5.24% | 9.10% |
References
- Implementation: AaveV3Ethereum
- Tests: AaveV3Ethereum
- Snapshot
- Discussion
Copyright
Copyright and related rights waived via CC0.