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, slopesupdateGhoSupplyCap: 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
- Using the Direct-to-AIP process, submit AIP(s) for vote.
Copyright
Copyright and related rights waived via CC0.