Given there has now been ample time for community discussion, we intend to move this proposal to Snapshot to confirm the community’s preference for GHO’s initial parameters.
We appreciate the varied input from the DAO’s risk providers and the ACI regarding both the parameters and relevant risk factors.
Given there is still some discussion around trade-offs between scalability and managing risk in terms of how aggressive the initial parameters should be, we believe it is best to take two options to Snapshot, option A as proposed by the ACI in consort with Chaos Labs, and option B as proposed initially by Aave Companies. The DAO’s preference can then be expressed clearly.
For option A, the following parameters are proposed in line with the ACI and Chaos’s recommendations:
| Parameter | Value |
|---|---|
| Borrow Rate | 1.5% |
| Bucket Capacity | $100M |
| stkAAVE Discount Rate | 30% |
| Discount Limit | 25% of total GHO bucket size |
For option B, as proposed by Aave Companies and in line with Gauntlet’s recommendations, the following parameters are proposed:
| Parameter | Value |
|---|---|
| Borrow Rate | 2% |
| Bucket Capacity | $50M |
| stkAAVE Discount Rate | 25% |
| Discount Limit | 25% of total GHO bucket size |
Both options will be taken to Snapshot on 28/04/2023.
Regarding the mentioned GHO Stability Module (GSM), this will not be introduced at launch and therefore shouldn’t be taken into consideration for GHO’s initial parameters.
[29/04/2023] Edited to include Gauntlet’s support for Option B