@eboado Thanks for your comments!
There is an important lack of a holistic strategy regarding incentives. On the one hand, the liquidity committee targets the incentivization of “concentrated” liquidity pools, which from my perspective clearly seems like the first step. On the other hand, with this proposal, the DAO is getting a sizeable AURA exposure both from the market and OTC without full certainty on when is the right moment to really use it.
The proposed GHO Liquidity Strategy—which the GHO Liquidity Committee will act upon—clearly promotes a diversified liquidity approach. Regardless of any additional initiatives to acquire incentive power in other AMMs—which we are definitely keen to explore—this proposal addresses Balancer specifically.
We’d also like to point out that the strategic value of Balancer goes beyond GHO. The current incentive design for the Safety Module partially relies on the 80/20 AAVE/ETH Balancer Pool, and its diversification plan will probably include other BPTs, which will effectively reduce AAVE emissions by introducing additional BAL/AURA rewards.