[ARFC] GHO Stewards - GHO Parameter Adjustments


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

5 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.

2 Likes

Title: [ARFC] GHO Stewards - Adjustments GHO Borrow Cap
Author: @karpatkey_TokenLogic , @ACI @ChaosLabs
Created: 2024-05-01


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.

5 Likes

Title: [ARFC] GHO Stewards - Adjustments GHO Borrow Cap
Author: @karpatkey_TokenLogic @ACI @ChaosLabs
Created: 2024-05-02


Summary

This publication proposes increasing the GHO Borrow Cap from 52M to 54M.

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 52M 54M 2M

The increase is to be implemented when practical to do so.

Next Steps

The GHO Stewards will revise the GHO Borrow Cap to 54M 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.

2 Likes

Title: [ARFC] GHO Stewards - Adjustments GHO Borrow Cap
Author: @karpatkey_TokenLogic , @ACI @ChaosLabs
Created: 2024-05-01


Summary

This publication proposes increasing 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

The GHO borrow cap is to be increased as follows:

Description Current Proposed Delta
Borrow cap 60M 62M 2M

Next Steps

The GHO Stewards will revise the GHO Borrow Cap 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

Title: [ARFC] GHO Stewards - Adjustments GHO Borrow Cap
Author: @karpatkey_TokenLogic , @ACI @ChaosLabs
Created: 2024-05-01


Summary

This publication proposes increasing 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

The GHO borrow cap is to be increased as follows:

Description Current Proposed Delta
Borrow Cap 62M 65M 3M

Next Steps

The GHO Stewards will revise the GHO Borrow Cap 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.

2 Likes

Title: [ARFC] GHO Stewards - Adjustments GHO Borrow Cap
Author: @karpatkey_TokenLogic , @ACI @ChaosLabs
Created: 2024-06-03


Summary

This publication proposes increasing 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

The GHO borrow cap is to be increased as follows:

Description Current Proposed Delta
Borrow Cap 68M 75M 7M

Next Steps

The GHO Stewards will revise the GHO Borrow Cap 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.

3 Likes

Title: [ARFC] GHO Stewards - Adjustments GHO Borrow Cap
Author: @karpatkey_TokenLogic , @ACI @ChaosLabs
Created: 2024-06-03


Summary

This publication proposes increasing 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

The GHO borrow cap is to be increased as follows:

Description Current Proposed Delta
Borrow Cap 75M 82M 7M

Next Steps

The GHO Stewards will revise the GHO Borrow Cap 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.

Once again, if the existing risks of GHO are controlled, the issuance of GHO should be rapidly increased in order to occupy more market share, so that more people can use GHO, and take advantage of this bull market to obtain more users. In the bear market, you will increase the upper limit of 1 billion at a time, which is not necessarily needed by anyone。

I really don’t understand the difference between increasing the cap by $1 million each time and increasing the cap by $100 million. Is it to increase the workload?

1 Like

if we could increase overnight the cap by $100M we would do it, more GHO means more revenue for the DAO

But doing so would kill the GHO peg and hurt the brand we worked hard to rebuild in 2024.

3 Likes

Title: [ARFC] GHO Stewards - Amend GHO Stability Module Fees
Author: @karpatkey_TokenLogic, @ACI @ChaosLabs
Created: 2024-06-10


Summary

This publication informs the Aave community that the USDC to GHO and USDT to GHO Fee will be reduced from 0.20% to 0.00%.

Motivation

With the new version of the GSM Stewards deployed, the USDC to GHO and USDT to GHO Fee can be reduced to 0.00%. Upon reducing the GHO Mint Fee to zero, whenever GHO trades above peg swaps will be routed via the GSM. Provided the cap for each GSM has not been reached, this will result in USDC and USDT inflows to the respective GSM.

Specification

The GHO Stewards will perform the following:

GSM Parameter Current Value Proposed Value
USDC to GHO Fee 0.20% 0.00%
USDT to GHO Fee 0.20% 0.00%

Next Steps

The GHO Stewards will revise to 0.00% the fee for minting GHO via the USDC and USDT GSMs.

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.

2 Likes

Well, I’m sure you’ll do a good job, but maybe there are some key points I didn’t see

1 Like

title: [ARFC] GHO Borrow Rate Update
author: @karpatkey_TokenLogic + @ACI + @ChaosLabs
created: 2024-06-19


Summary

In response to recent market events, this publication proposes reducing the GHO Borrow Rate by 100bps.

Motivation

In response to following prevailing conditions:

  • Stable coin borrow rates decreasing
  • Demand for GHO debt easing
  • Merit Rewards APR being diluted

The GHO Stewards intend to reduce the Borrow Rate by 100 bps.

The chart below shows the GHO, USDC and USDT borrow rates from the beginng of April.

Screenshot 2024-06-19 at 13.44.40

GHO’s borrow rate has remained consistently higher than the broader market on Aave v3 with the majority of this premium being offset by the Merit program. The net borrow rate for GHO is now higher than the broader market conditions.

As a result, the GHO Stewards propose reducing the Borrow Rate by 100 bps.

Specification

Implement the following changes:

Description Current APR (%) Proposed APR (%)
Non Discounted Borrow Rate 12.00% 11.00%
stkAAVE Discount 30.00% 30.00%
Discounted Borrow Rate 8.4% 7.70%

Do note the above table does not include any compounding.

Disclosure

TokenLogic, ACI, Chaos Labs and karpatkey receive no payment for this proposal. TokenLogic, ACI and karpatkey are both delegates within the Aave community.

Copyright

Copyright and related rights waived via CC0.

2 Likes

title: [ARFC] GHO Borrow Rate Update
author: @karpatkey_TokenLogic + @ACI + @ChaosLabs
created: 2024-07-06


Summary

In response to recent market events, this publication proposes reducing the GHO Borrow Rate by 100bps.

Motivation

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

Borrowing rates for USDC and USDT are meaningfully lower than the current non-discounted GHO borrow rate. The image below highlights the relative cost of GHO debt relative to USDC and USDT. The GHO Stewards intend to reduce the GHO Borrow Rate by 100 bps periodically, until GHO’s Borrow Rate aligns with broader market conditions.

Screenshot 2024-07-06 at 09.45.14

Specification

The GHO Stewards are to reduce the Borrow Rate by 100 bps.

Description Current (%) Proposed (%) Delta
Borrow Rate 11.00% 10.00% -100 bps

Next Steps

We will closely monitor market behavior and evaluate this decision with every adjustment.

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.

1 Like

Title: [ARFC] GHO Stewards - Adjustments GHO Borrow Cap
Author: @karpatkey_TokenLogic , @ACI @ChaosLabs
Created: 2024-07-11


Summary

This publication proposes increasing 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

The GHO borrow cap is to be increased as follows:

Description Current Proposed Delta
Borrow Cap 82M 90M 8M

Next Steps

The GHO Stewards will revise the GHO Borrow Cap 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.

1 Like

title: [ARFC] GHO Borrow Rate Update
author: @karpatkey_TokenLogic + @ACI + @ChaosLabs
created: 2024-07-09


Summary

In response to recent market events, this publication proposes reducing the GHO Borrow Rate by 100bps.

Motivation

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

Borrowing rates for USDC and USDT are meaningfully lower than the current non-discounted GHO borrow rate. The image below highlights the relative cost of GHO debt relative to USDC and USDT. The GHO Stewards intend to reduce the GHO Borrow Rate by 100 bps periodically, until GHO’s Borrow Rate aligns with broader market conditions.

Screenshot 2024-07-11 at 16.21.17

This is the second implementation of the -100 bps adjustment.

Specification

The GHO Stewards are to reduce the Borrow Rate by 100 bps.

Description Current (%) Proposed (%) Delta
Borrow Rate 10.00% 9.00% -100 bps

Next Steps

We will closely monitor market behavior and evaluate this decision with every adjustment.

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.


title: [ARFC] GHO Borrow Rate Update
author: @karpatkey_TokenLogic + @ACI + @ChaosLabs
created: 2024-7-11


Summary

In response to recent market events, this publication proposes reducing the GHO Borrow Rate by 100bps.

Motivation

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

Borrowing rates for USDC and USDT are meaningfully lower than the current non-discounted GHO borrow rate. The image below highlights the relative cost of GHO debt relative to USDC and USDT. The GHO Stewards intend to reduce the GHO Borrow Rate by 100 bps periodically, until GHO’s Borrow Rate aligns with broader market conditions.

Screenshot 2024-07-11 at 16.28.09

This is the third implementation of the -100 bps adjustment.

Specification

The GHO Stewards are to reduce the Borrow Rate by 100 bps.

Description Current (%) Proposed (%) Delta
Borrow Rate 9.00% 8.00% -100 bps

Next Steps

We will closely monitor market behavior and evaluate this decision with every adjustment.

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.


Title: [ARFC] GHO Stewards - Adjustments GHO Borrow Cap
Author: @karpatkey_TokenLogic , @ACI @ChaosLabs
Created: 2024-07-11


Summary

This publication proposes increasing 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

The GHO borrow cap is to be increased as follows:

Description Current Proposed Delta
Borrow Cap 90M 95M 5M

Next Steps

The GHO Stewards will revise the GHO Borrow Cap 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.

1 Like