Personally, I don’t believe Curve - or any protocol that relies purely on inflation for TVL - will be a major component of DeFi as it matures, as the incentive structure is not sustainable. In short Curve is mostly a Ponzi and all Ponzis tend to collapse sooner or later. I’d rather not see AAVE lose out in the eventual collapse of Curve.
In my view it should be a priority of the AAVE DAO to seek to make GHO a staple of DeFI long after Curve is gone. So while there might be some short-term benefits of buying liquidity for GHO early on, a successfull GHO implementation will be able to attract liquidity and adoption on its own. I don’t believe the AAVE DAO is in a hurry to accelerate GHO adoption - it’s interest rate in itself is very attractive vs. other alternatives and what is already being worked on with Balancer was deemed enough to bootstrap early liquidity in previous proposals.
Also… @MarcZeller I’d like to point out there could be a slight conflict of interest in this proposal as we’re transfering risk from current stakers in the AAVE Safety Module (such as yourself) to the overall protocol. So it’s possible there might be a bias in the proposal to avoid being personally slashed, despite the event being net neutral to the AAVE protocol. I’d urge to assess the impact of bad debt not only from the perspective of stakers but also from overall health of the protocol - maybe it would be good for everyone to see that the AAVE protocol work as intended, even under great stress!
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