[ARFC] Treasury Management - GHO Liquidity Strategy Update

Hi @SevenSeas,

Thank for sharing the details on the Turbo GHO Vault. We would like to explore incorporating the Sommelier Turbo GHO vault into the broader GHO liquidity strategy.

Reallocating incentives across Bunni and Sommelier makes the most sense given both focus on Uniswap v3. The liquidity profile inside the Turbo Vault can be shaped to help bring GHO back to peg. An example of this would be to skew liquidity beneath the peg, such that any buy pressure on GHO has a larger effect than it would otherwise would have had. For this reason, as well as others, active liquidity management has advantages over passive ranges.

As we work through a revised Bunni / Sommelier strategy, we propose granting the GHO Liquidity Committee the flexibility to direct incentives to the Turbo GHO Vault. We have added a comment to this proposal which will be going up for vote in the near future. A further update on GHO Liquidity strategy between Bunni and Sommelier will be provided here in due course.

We would like to thank the Sommlier team for reaching out and there continued support for GHO.

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