[ARFC] Further increase GHO Borrow Rate

Governance
11

I think the proposed borrow rate change should have a positive impact on GHO peg. However, I don’t think 3% will be high enough to get GHO back to 1:1 parity with USD.

IMO the best course of action would be to either:

  • Raise GHO borrow rate directly to 5% (parity with DSR and Maker/Spark borrow rates, highly likely to push GHO up to price parity with USD, while offering a significant ~1.5% rate discount to stkAAVE stakers)
  • Adopt a formal plan to raise GHO borrow rates by 0.5% (or more) each month until GHO price is within 0.995<>1.005 USD monthly average price range
3 Likes