[ARFC] Launch GHO on Sonic & set ACI as Emissions Manager for Rewards
title: [ARFC] Launch GHO on Sonic
author: @ACI & @TokenLogic
created: 2025-03-05
Summary
This proposal aims to launch GHO on Sonic & set ACI as Emissions Manager for GHO and aGHO.
Motivation
GHO has gone multichain with its expansion to the Arbitrum and Base networks. As Aave continues its growth across new ecosystems, it presents a strategic opportunity to extend GHO’s reach alongside it. Sonic’s DeFi sector is currently thriving, and with Aave set to launch on Sonic in the coming weeks, deploying GHO there would be a natural next step.
Sonic’s current growth is largely driven by the anticipation of its upcoming airdrop, scheduled for June. Users earn points while protocols accumulate gems based on their activity within the ecosystem.
A key part of the early GHO growth strategy on Sonic will be securing liquidity in an Aave Boosted StableSurge Pool on Beethoven, a friendly fork of Balancer v3. This integration enables idle liquidity to be automatically redeployed into Aave to maximize capital efficiency. Additionally, as part of Aave’s collaboration with Balancer, these pools will receive further support, with Beethoven allocating a portion of their “gems” rewards to incentivize GHO liquidity.
Just as with the Base deployment, a well-coordinated strategy is crucial for GHO’s expansion to Sonic. A successful launch will require close collaboration among service providers to build a strong infrastructure, establish appropriate risk parameters, and solidify GHO’s role as a key stablecoin within Sonic’s DeFi ecosystem.
This ARFC vote seeks community consensus to move forward with GHO’s deployment on Sonic, paving the way for its continued multichain growth and deeper integration across emerging ecosystems.
Specification
The proposed deployment of GHO on Sonic will require coordination across several key components:
Service Provider | Responsibility |
---|---|
Aave Labs + BGD + Certora | Deploy CCIP & Aave Protocol Updates |
TokenLogic | Deploy Facilitator, GSM & GHO Steward Updates |
Chaos Labs + Risk Llama | GSM, CCIP & Aave Protocol Parameters |
ACI + TokenLogic | Incentive Program & Distribution |
Aave Liquidity Committee | DEX Liquidity |
Gho Stewards | Maintain Risk Parameters |
ACI multisig address: 0xac140648435d03f784879cd789130F22Ef588Fcd
The final timeline and technical specifications for each component will be determined by the service providers and outlined in subsequent AIPs, pending approval of this ARFC.
Aave Protocol - GHO Reserve Parameters
Updated proposal 2025-03-15 with Chaos feedback
Parameter | Value |
---|---|
Asset | GHO |
Market | Sonic |
Isolation Mode | No |
Borrowable | Yes |
Collateral Enabled | No |
Supply Cap | 2,500,000 |
Borrow Cap | 2,250,000 |
Debt Ceiling | - |
LTV | - |
LT | - |
Liquidation Bonus | - |
Liquidation Protocol Fee | - |
Variable Base | 0% |
Variable Slope1 | 6.5% |
Variable Slope2 | 50% |
Uoptimal | 90% |
Reserve Factor | 10% |
Stable Borrowing | Disabled |
Flashloanable | Yes |
Siloed Borrowing | No |
Borrowable in Isolation | No |
E-Mode Category | N/A |
Ethereum <> Sonic Facilitator
A facilitator will be deployed on Ethereum specifically to support Sonic.
GHO is considered to have entered circulating supply when users exchange USDC.e for GHO via the stataUSDC.e GSM on Sonic.
The initial configuration for the Sonic GhoDirectMinter facilitator as shown below:
Parameter | Value |
---|---|
Mint Cap | 10M Units |
This is to be implemented by setting the newFacilitatorBucketCapacity
to to 10M.
Reference: GhoDirectMinter
CCIP Configuration
To support the launch of GHO on Sonic, the following parameter adjustments are proposed:
Parameter | Value |
---|---|
Bucket Capacity | +15M Units |
Rate Limit Capacity | 1,000,000 units |
Refill Rate | 200 GHO/sec |
The Bucket increase is additional to the Bucket Capacity at the time to ensure the GSM can be supplied with GHO.
This is expected to support strong initial growth with the DAO and other expected to be moving large amounts of GHO through the bridge.
Reference: GHO Deployment
GSM Configuration
The below provides the initial configuration of the stataUSDC.e GSM to be deployed on Sonic.
Parameter | Value |
---|---|
GHO Bucket Cap | 10.00M |
USDC Exposure Cap | 5.00M |
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 | 0.00% |
With GHO being minted on Ethereum and being transferred to the GSM, the Mint() function on the Ethereum instance of stataGSM is to be replaced by Transfer() functionality. Pre-minted GHO held by the stataGSM on Sonic is to be transferred when USDC is received.
stataUSDC Revenue
A bot, deployed as part of Dolce Vita will periodically claim the revenue to the DAO’s treasury.
GHO Stewards
GhoAaveSteward
updateGhoBorrowCap
-
- The update changes up to 100% upwards and downwards
- Only callable by the GHO Steward
updateGhoBorrowRate
-
- The update changes up to 5.0% (configurable by the DAO) upwards or downwards the following four variables:
- optimalUsageRatio
- baseVariableBorrowRate
- variableRateSlope1
- variableRateSlope2
- The initially allowed amount of change for these variables is 5%, but is configurable by the DAO
- Only callable by the GHO Steward
- The update changes up to 5.0% (configurable by the DAO) upwards or downwards the following four variables:
updateGhoSupplyCap
-
- The update changes up to 100% upwards
- Only callable by the GHO Steward
GhoGsmSteward
updateGsmExposureCap
-
- The update changes up to 100% upwards
- Only callable by the GHO Steward
updateGsmBuySellFees
-
- The update changes up to 0.5% upwards or downwards (in both buy and sell individually)
- Asumes that strategy is FixedFeeStrategy created by
FixedFeeStrategyFactory
- Only callable by the GHO Steward
Budget
Create an Allowance for GHO on Ethereum for a total of 1,000,000 GHO from Prime instance to support the initial growth of GHO on Sonic.
ALC Ethereum SAFE: 0xA1c93D2687f7014Aaf588c764E3Ce80aF016229b
Acquire GHO and deposit into Prime instance:
Ethereum
aEthUSDT (1.00M)
Disclosure
The ACI & TokenLogic does not receive any payment for this proposal.
Next Steps
- Gather feedback from the community.
- If consensus is reached on this ARFC, escalate this proposal to the Snapshot stage.
- If Snapshot outcome is YAE, escalate this proposal to the AIP stage.
Copyright
Copyright and related rights waived via CC0.