title: [ARFC] Fund USDC & USDT GSM
author: @karpatkey_TokenLogic & @ACI
created: 2024-05-02
Summary
This publication proposes funding the USDC and USDT GHO Stability Modules (GSM).
Motivation
With significant improvement in the GHO price as a result of the ongoing merit program, the GHO Stewards would like to propose funding both the USDC and USDT GSMs.
Funding the GSM is expected to help mitigate the potential impact of funds being withdrawn from the stkGHO Safety Module (SM) category by providing continuous support for the GHO peg and protect the DEX liquidity spread across several pools.
The below table shows the larger holding sizes currently in cool down. Although some users will be eligible to withdraw GHO before the GSM is funded, the GSM is intended to be funded before some of the later holdings exit cool down.
| SM Category | Size | Cool Down Date |
|---|---|---|
| stkGHO | 1.4M | 06/05/2024 |
| stkGHO | 3.0M | 08/05/2024 |
| stkGHO | 0.9M | 10/05/2024 |
| stkGHO | 2.4M | 19/05/2024 |
Source: Dune Dashboard
With the introduction of the Merit rewards expected to be included in the Aave Protocol frontend very soon and AAVE emissions flowing to depositors, we expect several of these addresses will recommit to holding GHO within the SM.
Specification
Two Allowances are to be created enabling the Aave Liquidity Committee (ALC) to draw 1M USDC and 1M USDT from Aave v3.
When market conditions are optimal, the ALC will fund the USDC and USDT GSMs.
Do note the GSMs are currently configured to receive a maximum of 500k USDC and 500k of USDT. The additional USDC and USDT will be drawn down by the ALC when GHO Stewards determine those funds are needed at each respective GSM.
ALC SAFE: 0x205e795336610f5131Be52F09218AF19f0f3eC60
| Asset | Asset | GSM Address |
|---|---|---|
| USDT | 1M | 0x686F8D21520f4ecEc7ba577be08354F4d1EB8262 |
| USDC | 1M | 0x0d8eFfC11dF3F229AA1EA0509BC9DFa632A13578 |
The resulting GHO is to be kept in the ALC until its future use is dictated by governance.
This proposal will route via Snapshot before being submitted to AIP.
Future GSM related proposals, such as this one, are to be implemented via the Direct-to-AIP process.
Disclosure
TokenLogic, ACI and karpatkey receive no payment for this proposal. TokenLogic, ACI and karpatkey are all delegates within the Aave community.
Next Steps
- Gather feedback from the community and risk service providers.
- If consensus is reached on this ARFC, escalate this proposal to the Snapshot stage.
- If Snapshot outcome is YAE, escalate this proposal to AIP stage
Copyright
Copyright and related rights waived via CC0.