Overview
Since more than 180 days have passed since our previous analysis of this proposal, GHO’s liquidity and market conditions have evolved. In light of these changes, this post provides updated parameters for GHO based on the most recent on-chain data.
Market Data
Compared to our previous analysis of GHO at the end of 2024, GHO’s market capitalization has grown significantly, showing an overall upward trend over the past three months. As of this writing, GHO’s total market cap stands at $218M.
The backing distribution of GHO has remained relatively stable over time and is well diversified across highly liquid assets. Currently, ETH correlated assets make up the largest portion of the collateral, followed by BTC correlated assets, then stablecoins, and finally other assets.
Recommendation
As outlined above, GHO has exhibited a strong upward trajectory, and its deployment on Arbitrum has validated cross-chain adoption beyond Ethereum. Accordingly, we reaffirm our recommendation to maintain a bridge cap of $25M to support controlled and secure expansion. Given the consistent growth in GHO’s market cap and clear signs of borrowing demand, we propose increasing the initial supply and borrow caps on Avalanche. The only other modification is the interest rate curve, which has been updated to align with GHO’s configuration on Base.
Specification
| Parameter | Value |
|---|---|
| Asset | GHO |
| Market | Avalanche |
| Isolation Mode | No |
| Borrowable | Yes |
| Collateral Enabled | No |
| Supply Cap | 10,000,000 |
| Borrow Cap | 9,000,000 |
| Debt Ceiling | - |
| LTV | - |
| LT | - |
| Liquidation Bonus | - |
| Liquidation Protocol Fee | - |
| Variable Base | 0% |
| Variable Slope1 | 5.50% |
| Variable Slope2 | 50.00% |
| Uoptimal | 90% |
| Reserve Factor | 10% |
| Stable Borrowing | Disabled |
| Flashloanable | Yes |
| Siloed Borrowing | No |
| Borrowable in Isolation | No |
| E-Mode Category | N/A |
Disclaimer
Chaos Labs has not been compensated by any third party for publishing this recommendation.
Copyright
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