[ARFC] Launch GHO on Plasma & Set ACI as Emissions Manager for Rewards

[TokenLogic]

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[ARFC] Launch GHO on Plasma & Set ACI as Emissions Manager for Rewards
Author: @TokenLogic
Created: 2025-08-21

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Summary

This ARFC proposes deploying GHO on the Plasma blockchain and appointing ACI as the Emissions Manager for both GHO and aGHO. The goal is to establish GHO as a key stablecoin within Plasma’s ecosystem from inception, facilitating reward programs, liquidity incentives, and seamless integration with the upcoming Aave deployment on Plasma.

Motivation

Plasma is a purpose-built, EVM-compatible Bitcoin sidechain designed specifically for stablecoin scalability, speed, and security—offering zero-fee USDT transfers, lightning-fast finality, and Bitcoin-anchored settlement.

The network is quickly approahcing launch with substantial USDT liquidity and an institutional partnership with Aave, including active GHO support on the platform.

Deploying GHO concurrently with the Aave instance on Plasma ensures that GHO becomes foundational to DeFi and payments infrastructure on a chain optimized for stablecoin utility.

Specification

Roles and Responsibilities

Service Provider	Responsibility
TokenLogic	Deploy GHO infrastructure and bridging components
TokenLogic	Configure Facilitator, GSM, and Steward logistics
Chaos Labs + LlamaRisk	Review initial risk parameters tailored to Plasma
BGD + Aave Labs	Review Pull Requests ahead of voting submission
Certora	Cold Review / Audit of Pull Requests
ACI + TokenLogic	Design incentives and distribute emissions
Aave Liquidity Committee	Coordinate GHO liquidity across Plasma DEXs
GHO Stewards	Maintain risk parameters post-deployment

ACI Multi-sig Address: 0xac140648435d03f784879cd789130F22Ef588Fcd
Gho Stewards Address: 0x8513e6F37dBc52De87b166980Fa3F50639694B60

GHO Parameters for Aave v3 on Plasma

Parameter	Value
Asset	GHO
Market	Plasma
Isolation Mode	No
Borrowable	Yes
Collateral Enabled	No
Supply Cap	5,000,000
Borrow Cap	4,500,000
Debt Ceiling	–
LTV	–
Liquidation Bonus	–
Variable Base	0%
Variable Slope1	6.5%
Variable Slope2	50%
Uoptimal	90%
Reserve Factor	10%
Stable Borrowing	Disabled
Flashloanable	Yes
Siloed Borrowing	No

Facilitator & Bridging Configuration

Deploy a GhoDirectMinter facilitator on Ethereum to enable GHO issuance for Plasma.

• Mint Cap: 15M GHO

CCIP Bridge Configuration:

• Bucket Capacity: 15M GHO
• Inbound Capacity: 1.5M GHO
• Outbound Capacity: 1.5M GHO
• Refill Rate: 300 GHO/sec

GSM Parameters (stataUSDT0.plasma)

Parameter	Value
GHO Bucket Cap	10M GHO
USDT Exposure Cap	5M
Freeze Lower Bound	$0.990
Freeze Upper Bound	$1.010
Unfreeze Lower Bound	$0.995
Unfreeze Upper Bound	$1.005
Mint GHO Fee	0%
Burn GHO Fee	0%

USDT deposits into stataUSDT0.plasma trigger GHO transfers using Ethereum-held inventory via GSM.

GHO Steward Configuration

GhoAaveSteward

• updateGhoBorrowCap: ±100%
• updateGhoBorrowRate: ±5% on optimal usage ratio, base variable rates, slopes
• updateGhoSupplyCap: Up to +100%

GhoGsmSteward

• updateGsmExposureCap: ±100%
• updateGsmBuySellFees: ±0.5% per side (FixedFeeStrategy)

Both stewards remain callable only by the GHO steward protocol.

Budget

Bootstrap funding on Ethereum will be bridged to Plasma via the facilitator for initial liquidity and ecosystem stimulation. The exact Ethereum SAFE address will be defined in a follow-up AIP.

Disclaimer

TokenLogic receives no compensation for drafting or coordinating this ARFC.

Next Steps

1. Gather feedback from the community.
2. If consensus is reached on this ARFC, escalate this proposal to the Snapshot stage.
3. If Snapshot outcome is YAE, escalate this proposal to the AIP stage.

Copyright

Copyright and related rights waived via CC0.

[LlamaRisk]

Summary

LlamaRisk supports launching GHO on Plasma with the initial Aave deployment on Plasma. Similarly to other GHO expansion initiatives, a measured approach is to be taken while allowing GHO to scale measurably as the demand comes. Therefore, we support the launch parameters and the strategy proposed by TokenLogic.

Planned liquidity incentives will help to sustain the secondary market stability of GHO on Plasma. At the same time, the decision to implement stataGSM will ensure that a second stability buffer starts to fill since GHO’s deployment gradually.

The Cross-Chain Progress

Since GHO’s cross-chain deployments began, GHO has grown to 280M total supply, with ~26M GHO residing on the supported L2s. The Avalanche market has seen the most success, while Base market has contracted over time.

Source: TokenLogic GHO Dashboard, August 26, 2025

The historical GHO flows indicate that the overall GHO flows were positive for Arbitrum and Avalanche. In addition, the newly deployed Gnosis market has attracted ~300k in borrows.

Source: TokenLogic GHO Dashboard, August 26, 2025

Current Health of GHO

After the renewed positive market conditions and increased leverage strategies, GHO’s secondary market peg was temporarily affected, reaching a discount of up to 30 bps in late July. Slight increases in GHO borrow rates and a bump in Aave Savings Rate helped to contain the outflows and reduced secondary market pressure, with GHO now back to 10 bps (0.1%) peg bounds.

Source: CoinMarketCap, August 26, 2025

On Ethereum, GHO currently possesses a 37M sell buffer within 30 bps (0.3%) price impact, suggesting that a selling pressure that is more than 10% supply would be needed to destabilize the peg again.

Potential Use Cases

Currently, GHO has a collateral ratio of 3.4, with the most prominent collateral assets being WETH, ETH LSTs, and BTC wrappers. We expect similar assets to be onboarded on Aave’s Plasma markets, generating sufficient demand for GHO loans.

Source: TokenLogic GHO Dashboard, August 26, 2025

GHO DEX integrations and incentives are also expected to improve GHO’s expansion among other yield venues on the upcoming Plasma network.

Disclaimer

This review was independently prepared by LlamaRisk, a community-led decentralized organization funded in part by the Aave DAO. LlamaRisk is not directly affiliated with the protocol(s) reviewed in this assessment and did not receive any compensation from the protocol(s) or their affiliated entities for this work.

The information provided should not be construed as legal, financial, tax, or professional advice.

[ChaosLabs]

Summary

Chaos Labs supports launching GHO on the Plasma instance. Given the deployment’s strategic positioning for rapid expansion and Plasma’s focus on stablecoin activity, listing GHO at launch is well-timed to capture structural borrowing demand. We also support the proposed initial risk parameters, which mirror mature deployments such as Arbitrum and Base, and provide the necessary guardrails for listing on a new instance.

Motivation

Plasma is designed as a stablecoin-first, EVM-compatible blockchain; introducing GHO at launch positions it as one of the foundational stablecoins on Plasma. Given the recently proposed initial assets and substantial initial caps, listing GHO would provide additional utility to the deployment and position GHO for future expansion on the instance.

GHO Performance

In recent months, GHO’s market capitalization has increased by over $100 million, driven primarily by demand in the Ethereum Prime instance.

Peg performance has been stable. Although GHO has traded slightly below par at times, the average dislocation has been modest—around 10 bps with limited variance—consistent with improving liquidity and adoption.

GSM Implementation

We support implementing a stataUSDT0-based GSM on Plasma and expect sufficient USDT0 supply to be available at launch. With ample supply and market liquidity, stataUSDT0 should be an effective stabilization asset for the GSM, capable of absorbing fluctuations around the GHO’s peg. Additionally, a larger and more liquid USDT0 market will help keep borrowing and lending rates more stable and less prone to sudden spikes or drops.

Steward Authority Framework

The governance framework gives GHO Stewards the authority to adjust parameters within set boundaries, achieving a balance between flexibility and risk management. This structure allows for timely updates to borrow caps, interest rates, supply caps, and GSM parameters within defined limits, enabling the system to respond quickly to changing market conditions while maintaining governance oversight. Experience from previous GHO deployments shows that this approach has effectively preserved stability during the early launch phase and supported orderly scaling.

IR

We additionally support the initial interest rate (IR) configuration, as it aligns with the broader stablecoin market, maintaining competitive pricing at Uoptimal, while being more sensitive to utilization changes before the kink than USDT0.

Recommendation

Given Plasma’s strategic positioning for rapid growth, the structural drivers of GHO borrowing, and the asset’s demonstrated peg stability, we support listing GHO at launch as it establishes GHO’s position in the ecosystem. The proposed interest-rate curve aligns with broader market conditions and other stablecoins, while the initial supply and borrow caps balance risk with growth opportunities—enabling meaningful early adoption with clear room to scale as demand accelerates.

Disclosure

Chaos Labs has not been compensated by any third party for publishing this AGRS recommendation.

Copyright

Copyright and related rights waived via CC0.

[TokenLogic]

Summary

With the GHO lanes now activated on CCIP, this publication defines the launch parameters for GHO on Plasma.

Motivation

This publicaiton presents the revised GHO parameter configuration for deploying the remoteGSM and listing GHO on Aave Protocol. A joint collaboration program with Plasma, Maple Finance and Ethena, will be launched on Aave Protocol whilst separate and complimentary rewards programs will commence on Fluid and Balancer.

GHO Supply

Within the new syrupUSDT and GHO collateral eMode, users who:

• Supply syrupUSDT and GHO (50% syrupUSDT:50% GHO), with a cap of 50% for GHO eligible for rewards (if additional GHO is supplied, it won’t be rewarded)
• Borrow USDT0 and complete at least one leverage loop
• Maintain a health factor of less than 2.0

Will receive GHO incentives (~3.50%) such that the Total Supply yield (Native + Incentives) exceeds the native syrupUSDT yield by approximately 50bps.

The above incentive strategies create GHO Supply on Aave Protocol. Sourcing the GHO is expected to at least partially flow from through the remote GSM, which deposits USDT0 into Aave whereby the DAO earns the Supply yield.

GHO Demand

With strong GHO supply expected from the GHO incentives, GHO demand is created via the revision of eMode 2 to include GHO as a debt asset. eMode 2 is to offer sUSDe and USDe as collateral with USDT0 and GHO as debt, the GHO debt will receive a x5 Sats multiplier from the Ethena team that matches what is currently available on the Ethereum Core and Prime instances.

This is expected to stimulate Demand for GHO on Aave Protocol with GHO expected to be a lower cost alternative to USDT0 due to the Borrow Rate configuration (150bps less than USDT at Uoptimal) and additional Sats incentives acting to offset the cost of capital for leverage users.

Furthemore, additional eModes with Pendle PT assets are expected to provide sustained demand for GHO that reduces the reliance on GHO Incentive yield to attract GHO supply.

Fluid and Balancer

With support from the Aave Liquidity Committee (ALC) concentrated liquidity facilitating swaps will be incentivised on Fluid and Balancer in collaboration with each respective team and the Plasma team. Importantly, this stimulates demand for GHO on secondary markets outside of Aave Protocol and is expected to provide a net counter flow where users are expected to be net acquiring GHO.

Specification

The below outlines the scope to be implemented via AIP upon launching GHO on Plasma.

Facilitator & Bridging

Deploy an OwnableFacilitator facilitator on Ethereum to enable GHO issuance for Plasma.

• OwnableFacilitator Mint Cap: 100M GHO
• Initial Mint: 50M GHO

As required, future Minting of GHO on Ethereum, to be supplied into the remoteGSM on Plasma will be performed via direct submission of AIPs.

GhoReserve

Deploy GhoReserve on Plasma to hold bridged GHO initially.
Configure stataUSDT0 GSM as an entity with a draw capacity of 50M GHO.

USDT0 GSM Parameters (stataUSDT0)

Parameter	Value
GHO Cap	50M
stataUSDT0 Exposure Cap	45M
Freeze Lower Bound	$0.990
Freeze Upper Bound	$1.010
Unfreeze Lower Bound	$0.995
Unfreeze Upper Bound	$1.005
Mint GHO Fee	0.00%
Burn GHO Fee	0.15%

GHO Steward Configuration

GhoAaveSteward

• updateGhoBorrowCap: ±100%
• updateGhoBorrowRate: ±5% on optimal usage ratio, base variable rates, slopes
• updateGhoSupplyCap: Up to +100%

GhoGsmSteward

• updateGsmExposureCap: ±100%
• updateGsmBuySellFees: ±0.5% per side (FixedFeeStrategy)

Both stewards remain callable only by the GHO steward.

GHO Aave Listing Parameters

Parameter	Value
Asset	GHO
Isolation Mode	No
Borrowable	Yes
Collateral Enabled	Yes
Supply Cap	50,000,000
Borrow Cap	20,000,000
Debt Ceiling	-
LTV	75.0%
Liquidation Threshold	78.0%
Liquidation Penalty	4.50%
Liquidation Protocol Fee	10%
Variable Base	1.25%
Variable Slope1	3.50%
Variable Slope2	16.50%
Uoptimal	92%
Reserve Factor	5.00%
Stable Borrowing	Disabled
Flashloanable	Yes
Siloed Borrowing	No
Borrowable in Isolation	No
E-Mode Category	see below

eMode Category 2

Parameter	sUSDe	USDe	USDT0	GHO
Collateral	Yes	Yes	No	No
Borrowable	No	No	Yes	Yes
Max LTV	90%	90%	-	-
Liquidation Threshold	92%	92%	-	-
Liquidation Bonus	4.0%	4.0%	-	-

eMode Category - Category 5

Parameter	PT-USDe Jan	USDT0	USDe	GHO
Collateral	Yes	No	No	No
Borrowable	No	Yes	Yes	Yes
Max LTV	85.9%	-	-	-
Liquidation Threshold	87.9%	-	-	-
Liquidation Bonus	4.9%	-	-	-

eMode Category - Category 7

Parameter	PT-sUSDe Jan	USDT0	USDe	GHO
Collateral	Yes	No	No	No
Borrowable	No	Yes	Yes	Yes
Max LTV	84.4%	-	-	-
Liquidation Threshold	86.4%	-	-	-
Liquidation Bonus	6.0%	-	-	-

eMode Category (new)

Parameter	GHO	USDT0
Collateral	Yes	No
Borrowable	No	Yes
Max LTV	94%	-
Liquidation Threshold	96%	-
Liquidation Bonus	2.0%	-

eMode Category (new)

Parameter	syrupUSDT	GHO
Collateral	Yes	No
Borrowable	No	Yes
Max LTV	90%	-
Liquidation Threshold	92%	-
Liquidation Bonus	4.0%	-

eMode Category (new)

Parameter	syrupUSDT	GHO	USDT0
Collateral	Yes	Yes	No
Borrowable	No	No	Yes
Max LTV	90%	90%	-
Liquidation Threshold	92%	92%	-
Liquidation Bonus	4.0%	4.0%	-

Disclosure

TokenLogic does not receive any payment for this proposal.

Next Steps

1. Using the Direct-to-AIP process, submit AIP(s) for vote.

Copyright

Copyright and related rights waived via CC0.

[LlamaRisk]

LlamaRisk is supportive of the proposed GHO bootstrapping plan for Plasma.

The GHO incentive strategies outlined are a positive step towards creating sustainable GHO supply sinks, which will in turn support the GHO peg. It is encouraging to see that even GHO sourced from the remote GSM contributes to this goal by generating yield for the DAO.

We agree that the proposed E-Modes, where GHO is borrowable for PT leveraging strategies, will create demand. The initiatives on Fluid and Balancer are a thoughtful addition to absorb potential GHO sell pressure and create a net-positive flow for GHO on secondary markets.

Regarding the new GHO / USDT0 E-Mode Category:

Parameter	GHO	USDT0
Collateral	Yes	No
Borrowable	No	Yes
Max LTV	94%	-
Liquidation Threshold	96%	-
Liquidation Bonus	2.0%	-

Given that GHO’s price is fixed at $1 across Aave’s instances, the primary risk for this E-Mode is a significant and sustained shock to the USDT borrow rate. We believe that this risk is minimal, especially as USDT borrow rate shocks are resolved within hours. Therefore, we see no issue with the revised LTV/LT that will help to improve capital efficiency.

We will continue to monitor the on-chain flows and market dynamics once this plan is implemented to ensure the continued stability and growth of GHO.

Disclaimer

This review was independently prepared by LlamaRisk, a DeFi risk service provider funded in part by the Aave DAO. LlamaRisk is not directly affiliated with the protocol(s) reviewed in this assessment and did not receive any compensation from the protocol(s) or their affiliated entities for this work.

The information provided should not be construed as legal, financial, tax, or professional advice.

[efecarranza]

Hi all,

Due to feedback received on the size of the proposal, we have split it into 2 portions:

1. Migrates mainnet GSMs to new version

2.Bridges GHO to Plasma and sets up Gho on Aave as well as sets up GSM on Plasma

Thank you