Dear Aave community, after receiving valuable feedback from multiple parties, including ACI, Chaos Labs, and Gauntlet, The ACI is proposing a consensus solution for GHO’s launch (Genesis) parameters. This Amended Aave Request for Comments (ARFC) presents the revised launch parameters for the GHO stablecoin, aimed at creating a more attractive, scalable, and effective launch strategy for GHO while addressing key risks and maintaining peg stability.
Title: Launch Parameters ARFC for GHO Stablecoin
Summary
In response to the valuable feedback from the Aave community, this Amended Aave Request for Comments (ARFC) proposes revised genesis parameters for the GHO stablecoin. The goal is to create a more attractive, scalable, and effective launch strategy for GHO while addressing key risks and maintaining peg stability.
Proposed Launch Parameters
-
Borrow Rate: Set the initial borrow rate at 1.5%, striking a balance between attractiveness and sustainability in the current market environment.
-
Bucket Capacity: Begin with a higher initial bucket capacity of $100M to facilitate early growth. As pool liquidity targets are met, the bucket size will increase, allowing for scalability.
-
StkAAVE Discount Rate: Prioritize attractivity over protocol revenue in the early days of GHO launch. Implement a lower fixed fee model, with a discount rate of 30% for StkAAVE holders compared to the borrow rate, up to a limit of 25% of the total GHO bucket size. This will help GHO reach the critical mass needed for secondary liquidity.
Recap Table
| Parameter | Value |
|---|---|
| Borrow Rate | 1.5% |
| Bucket Capacity | $100M |
| StkAAVE Discount Rate | 30% |
| Discount Limit | 25% of total GHO bucket size |
Conclusion
By incorporating the collective feedback from the Aave community, this Genesis Parameters ARFC aims to establish a more effective launch strategy for GHO to thrive in the DeFi ecosystem.
We want to emphasize that this Genesis parameters, define Launch parameters, and evolution of these parameters will need to be managed by the Aave DAO, following launch.
It is crucial to continue monitoring the market conditions and adjusting the parameters as needed to ensure GHO’s successful integration and growth within the Aave platform. We appreciate the engagement from the community and look forward to further collaboration.