LlamaRisk supports the full suite of material improvements to the staked GHO product and the introduction of the native Savings Rate. The migration from the Merit-based stkGHO model to a native ERC-4626 yield-accruing vault is a robust technical improvement. Below, we briefly highlight several risk considerations.
The proposed 4.25% APR fixed rate will further reinforce the GHO stability as the attractive savings rate will bring part of the new GHO mints via the GSMs. The GHO Stewards, led by TokenLogic, will continue to manage the GSM exposure caps in order to control the demand in a risk safe manner.
The three-phase, 7-week migration schedule is well-structured. That said, it is essential to actively monitor migration flows throughout each epoch to ensure the legacy sGHO contract does not retain significant deposits by Week 7 when rewards are fully discontinued. Large depositors or integrators who fail to migrate in time could face a sudden loss of yield, potentially leading to disorderly or confused exits.
We therefore consider it important that the Aave frontend implement clear disclaimers informing users of the legacy sGHO deprecation timeline and the availability of the new ERC-4626 vault. More critically, the ability to supply to the legacy sGHO contract should be disabled on the frontend once the new vault is live. This is essential to avoid user confusion, as new depositors could otherwise inadvertently enter a contract with a declining and eventually zero yield. Explicit UI banners directing existing legacy sGHO holders toward migration would further reduce friction and support a clean transition.