Hello, and thank you, @Llamaxyz, for submitting these proposals in the forum.
Since the proposals are presented in separate threads to allow governance granularity, the ACI’s response will be variations of this current post on each thread.
The main use case for MKR on Aave is to allow MKR holders to use their assets to borrow. However, historically there has been little to no borrowing volume of these assets, so the ACI recommends a “NO” to enable borrowing.
This is in line with previous concerns raised by @monet-supply on the forum last year. The ACI is supportive of allowing MKR as a collateral asset in “isolation mode” only. This means that MKR can be used as collateral but cannot be borrowed.
The ACI believes it’s better to leave GHO out of isolation mode in the early days and not allow some assets to be collateral to mint it.
Since MKR is a governance asset, an upcoming upgrade by @bgdlabs might allow aMKR holders to keep their governance rights in Maker. The ACI believes this is a nice synergistic opportunity for MKR holders.
To summarize, the ACI is supportive of this proposal if the asset is not allowed to be borrowed and if Gho is not part of isolation mode.