[ARFC] GHO Stewards - Adjustments GHO Borrow Cap


Title: [ARFC] GHO Stewards - Adjustments GHO Borrow Cap
Author: @karpatkey_TokenLogic , @ACI @ChaosLabs
Created: 2024-04-08


Summary

A proposal to track adjustments to the GHO borrow cap.

Motivation

With the GHO Stewards permissions in place, this thread is to track adjustments to the GHO Borrow Cap and grant visibility to the Aave Community.

Specification

As the first proposed adjustment, the GHO borrow cap is to be increased in 1M.

Description Current (%) Proposed (%) Delta
Borrow cap 46M 47M 1M

Next Steps

We will move forward and implement these updates via the GHO Steward process. We will closely monitor market behavior and evaluate this decision with every increase.

Disclaimer

Chaos Labs, ACI, TokenLogic and karpatkey have not been compensated by any third party for publishing this ARFC.

Copyright

Copyright and related rights waived via CC0

4 Likes

Title: [ARFC] GHO Stewards - Adjustments GHO Borrow Cap
Author: @karpatkey_TokenLogic , @ACI @ChaosLabs
Created: 2024-04-22


Summary

A proposal to track adjustments to the GHO borrow cap.

Motivation

With the GHO Stewards permissions in place, this thread is to track adjustments to the GHO Borrow Cap and grant visibility to the Aave Community.

Specification

As the first proposed adjustment, the GHO borrow cap is to be increased in 1M.

Description Current (%) Proposed (%) Delta
Borrow cap 48M 50M 2M

Next Steps

We will move forward and implement these updates via the GHO Steward process. We will closely monitor market behavior and evaluate this decision with every increase.

Disclaimer

Chaos Labs, ACI, TokenLogic and karpatkey have not been compensated by any third party for publishing this ARFC.

Copyright

Copyright and related rights waived via CC0

5 Likes

Is the current adjustment strategy regarding the upper limit of GHO too conservative? If you want to reach the upper limit of US$1 billion, how long will it take to adjust? Will it take many years at the current pace? GHO currently only ranks 31st in terms of issuance in the entire stablecoin market. How can GHO develop rapidly and allow more people to use it? Is it a more important issue?

In the past GHO struggled with peg issues. To counter them the GLC was established and is closely monitoring how and where GHO is being used. To make sure it is staying at peg, the cap has to be opened step by step and then again be monitored to be sure everything is fine.

The higher the mcap of GHO will be, the bigger the cap raises can be too. As it is getting more stable and more liquidity.
So in the beginning it may be that the cap raises are small but the higher it gets, the bigger the cap raises will be. And soon there will be GHO on a L2 (which is currently being voted on). This will make sure GHO can reach 70-100m pretty fast.

1 Like

Title: [ARFC] GHO Stewards - Adjustments GHO Borrow Cap
Author: @karpatkey_TokenLogic , @ACI @ChaosLabs
Created: 2024-04-08


Summary

This publication proposes increasing the GHO Borrow Cap from 50M to 52M.

Motivation

With the GHO Stewards permissions in place, this thread is to track adjustments to the GHO Borrow Cap and grant visibility to the Aave Community.

Specification

As the first proposed adjustment, the GHO borrow cap is to be increased in 2M.

Description Current (%) Proposed (%) Delta
Borrow cap 50M 52M 2M

Next Steps

The GHO Stewards will revise the GHO Borrow Cap to 52M and closely will closely monitor market behaviour and evaluate this decision with every increase.

Disclaimer

Chaos Labs, ACI, TokenLogic and karpatkey have not been compensated by any third party for publishing this ARFC.

Copyright

Copyright and related rights waived via CC0.

4 Likes