# \[ARFC\] Treasury Management - GHO Funding **URL:** \ **Category:** Governance\ **Created:** [September 18, 2023, 8:57pm UTC](https://governance.aave.com/t/arfc-treasury-management-gho-funding/14887 "2023-09-18T20:57:18Z")\ **Posts on this page:** 10\ **Page:** 1
**Author:** ![TokenLogic](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/tokenlogic/32/8248_2.png) [@TokenLogic](https://governance.aave.com/u/TokenLogic)\ **Post date:** [September 18, 2023, 8:57pm UTC](https://governance.aave.com/t/arfc-treasury-management-gho-funding/14887/1 "2023-09-18T20:57:18Z")
* * * title: [ARFC] Treasury Management - GHO Funding author: @TokenLogic created: 2023-09-17 * * * # Summary This publication seeks to acquire GHO from secondary markets to support the Aave DAO’s short-term funding needs. # Motivation The objective of this publication is to further transition Aave DAO’s expenses towards being nominated in GHO. The below highlights some potential use cases for GHO: - 870,000 over 6 months [Aave Grants Continuation Proposal](https://governance.aave.com/t/temp-check-aave-grants-continuation-proposal/14831) - Another 300,000 GHO if AAVE is replaced with GHO - 75,000 GHO over 3 months [Expansion of “Orbit”](https://governance.aave.com/t/arfc-expansion-of-orbit-a-dao-funded-delegate-platform-initiative/14785) - 406,000 GHO over 3 months [GHO Liquidity Committee](https://governance.aave.com/t/temp-check-treasury-management-create-and-fund-gho-liquidity-committee/14800) - TBA Future ACI Funding Request (Renewal mid-October) Although the GHO Liquidity Committee is funded via its own AIP, its inclusion here indicates the magnitude of the potential ongoing spend. The current ACI funding proposal is 250,000 aUSDT, which serves only as a budgetary estimate. Similarly, the 406,000 over the back 3 months of a 6-month lookahead is used as a budgetary estimate. The spend identified above over the next 6 months is 1.676M GHO, or 1.976M GHO if AAVE is replaced with GHO within AGD proposal. There is also the potential [420,000 GHO](https://governance.aave.com/t/temp-check-treasury-management-swap-b-80bal-20weth-to-gho/14684) being acquired by swapping B-80BAL-20wETH to GHO via the Aave Swap Contract. There is also the potential for additional expenses to emerge, such as a renewal proposal from Gauntlet during late Q4 2023. An additional proposal will be presented closer to the time to accommodate any new GHO nominated expenses. This publication proposes converting 1.6M of stable coins held in the Ethereum Treasury to GHO. This will complement the existing realized GHO revenue. The GHO is to be held in the Treasury where existing service providers receive payment from. At the time of writing, swapping to acquire GHO will generate positive slippage, and the entire swap can be performed without causing GHO to trade above the $1 peg. The Aave DAO can then distribute GHO amongst the community using a price of $1. # Specification Using the Aave Swap Contract, convert the following asset holdings to GHO: - 49,900 aDAI v2 - 69,800 aBUSD v2 - 75,800 aTUSD v2 - 381,700 aBUSD v1 - 400,000 aEthDAI v3 - 622,800 aUSDT v2 The GHO will be transferred to the [Aave Ethereum Treasury](https://etherscan.io/address/0x464C71f6c2F760DdA6093dCB91C24c39e5d6e18c). # Disclosure TokenLogic receives no payment from Aave DAO or any external source for the creation of this proposal. TokenLogic is a delegate within the Aave ecosystem. # Copyright Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/). ---
**Author:** ![0xkeyrock.eth](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/0xkeyrock.eth/32/6082_2.png) [@0xkeyrock.eth](https://governance.aave.com/u/0xkeyrock.eth)\ **Post date:** [September 19, 2023, 10:01am UTC](https://governance.aave.com/t/arfc-treasury-management-gho-funding/14887/2 "2023-09-19T10:01:00Z")
Hello @TokenLogic, we’re supportive of this swap to enable GHO funding in general. As you quickly covered upcoming expenses, maybe this is a good time to start the conversation around the budget of the DAO on a yearly basis? We’re not sure if Llama’s dashboard [here](https://community.llama.xyz/aave/runway) is up-to-date. ---
**Author:** ![PaperImperium](https://avatars.discourse-cdn.com/v4/letter/p/779978/32.png) [@PaperImperium](https://governance.aave.com/u/PaperImperium)\ **Post date:** [September 20, 2023, 3:50pm UTC](https://governance.aave.com/t/arfc-treasury-management-gho-funding/14887/4 "2023-09-20T15:50:58Z")
Perhaps this is a question that’s obvious (I’m a bit of a tourist when it’s Aave governance), but why don’t you just make GHO redeemable for these instead? Rather than one-off buying GHO, you’d instantly have reserves of stablecoins (or their aTokens) that trade at $1. This would help enforce the fixed exchange rate you want. Maybe it all gets drained to mop up excess supply, but maybe just the promise of redemption for hard assets steadies the market price ---
**Author:** ![TokenLogic](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/tokenlogic/32/8248_2.png) [@TokenLogic](https://governance.aave.com/u/TokenLogic)\ **Post date:** [September 20, 2023, 8:05pm UTC](https://governance.aave.com/t/arfc-treasury-management-gho-funding/14887/5 "2023-09-20T20:05:08Z")
Hi @PaperImperium, Great to see you on the forum. The GHO GSM is currently undergoing audit and given the need for short term funding, we proposed a practical solution that can be implemented now. We agree the GSM is a more sustainable longer term solution and look forward to when GSM is deployed. ---
**Author:** ![PaperImperium](https://avatars.discourse-cdn.com/v4/letter/p/779978/32.png) [@PaperImperium](https://governance.aave.com/u/PaperImperium)\ **Post date:** [September 21, 2023, 1:01am UTC](https://governance.aave.com/t/arfc-treasury-management-gho-funding/14887/6 "2023-09-21T01:01:19Z")
Ah. That would qualify as an obvious reason 😅 ---
**Author:** ![jengajojo](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/jengajojo/32/5403_2.png) [@jengajojo](https://governance.aave.com/u/jengajojo)\ **Post date:** [September 22, 2023, 9:13am UTC](https://governance.aave.com/t/arfc-treasury-management-gho-funding/14887/7 "2023-09-22T09:13:20Z")
Thanks @TokenLogic I’m in favor of this swap to secure GHO for short-term funding, ensuring stability and supporting Aave DAO’s ongoing expenses and commitments ---
**Author:** ![TokenLogic](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/tokenlogic/32/8248_2.png) [@TokenLogic](https://governance.aave.com/u/TokenLogic)\ **Post date:** [September 22, 2023, 1:08pm UTC](https://governance.aave.com/t/arfc-treasury-management-gho-funding/14887/8 "2023-09-22T13:08:00Z")
Hi Everyone, A Snapshot vote has been created for the this proposal. [https://snapshot.org/#/aave.eth/proposal/0xb094cdc806d407d0cf4ea00e595ae95b8c145f77b77cce165c463326cc757639](https://snapshot.org/#/aave.eth/proposal/0xb094cdc806d407d0cf4ea00e595ae95b8c145f77b77cce165c463326cc757639) Thank you in advance to all those who participate in the vote. ---
**Author:** ![TokenLogic](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/tokenlogic/32/8248_2.png) [@TokenLogic](https://governance.aave.com/u/TokenLogic)\ **Post date:** [October 3, 2023, 7:26pm UTC](https://governance.aave.com/t/arfc-treasury-management-gho-funding/14887/9 "2023-10-03T19:26:17Z")
Hi Everyone, We will soon be submitting the payload for this proposal to BGD for review. The payload can be found [here](https://github.com/bgd-labs/aave-proposals/pull/323). TokenLogic - @MatthewGraham & @defijesus. ---
**Author:** ![TokenLogic](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/tokenlogic/32/8248_2.png) [@TokenLogic](https://governance.aave.com/u/TokenLogic)\ **Post date:** [October 10, 2023, 3:49pm UTC](https://governance.aave.com/t/arfc-treasury-management-gho-funding/14887/10 "2023-10-10T15:49:57Z")
Hi All, The following assets are to be swapped for GHO. - All BUSD (495,281.29) - All TUSD (266,254.90) - All aDAI (109,348.85) - 370,000 aUSDt v2 - 370,000 aEthDAI v3 Total 1,610,885.04 at the time of writing. The AIP will be submitted shortly. @MatthewGraham ---
**Author:** ![system](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/e/e11637c36f45ffa158f2146f5c19438d46e0824d.svg) [@system](https://governance.aave.com/u/system)\ **Post date:** [November 9, 2023, 3:50pm UTC](https://governance.aave.com/t/arfc-treasury-management-gho-funding/14887/11 "2023-11-09T15:50:41Z")
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