[ARFC] Treasury Management - GSM Funding & RWA Strategy Preparations

title: [ARFC] Treasury Management - GSM Funding & RWA Strategy Preparations
author: @karpatkey_TokenLogic - @MatthewGraham, @Sisyphos & @efecarranza
created: 2024-01-09


In preparation for launching the GHO Stability Module (GSM) and the $1M RWA strategy with Centirfuge, this publication seeks to make available the necessary amount of USDC and USDT on Ethereum v3.


The GSM is in the late stages of audit and is expected to be available for deployment in the near future. The Centrifuge proposal is currently mid way through the review process. The current stable coin holdings on Ethereum are insufficient to support the GSM, RWA strategy and Service Provider (SP) commitments. Additional funds are needed on Ethereum to support the GSM.

The largest GSM funding requested consisted of the following:

  • 3.5M USDC
  • 3.5M USDT

The RWA Strategy is valued at 1M of USDC funding.

The expected aEthUSDC and aEthUSDT Reserve Holding, post Aave Funding Part B being implemented, is as shown below:

  • 2.93M aEthUSDC (0.72M current holding plus 2.21M Aave Funding Part B)
  • 0.71M aEthUSDT (0.71M current holding)

It is clear from comparing the numbers above, there is a need to add to the aEthUSDC and aEthUSDT holdings in order to fullfill the GSM and RWA Strategy commitments.

Tapping into the aUSDT and aUSDC holdings is not enough as the current aUSDT (Aave v2) is only sufficient to cover 1 years runway and all the aUSDC will already migrated to aEthUSDC upon implementing Aave Funding Part B.

The aEthDAI reserve holds sufficient funds to cover any ImmuneFi Bug Bounty Program, sustain BGDLabs stream, support this bug bounty and this adhoc security request.

At the time of writing, it is only possible to move funds between the Polygon and Ethereum Treasuries via on-chain governance. The below summaries the expected Polygon Treasury holdings based upon this migration PR being implemented.

  • 2.58M aPolUSDC
  • 1.53M aPolDAI
  • 0.80M aPolUSDT

There is sufficient funds on Polygon to cover the immediate needs of the GHO GSM.

In addition to the above, this proposal also contains a small bit of house keeping that includes setting two legacy aUSDC Allowances to zero. Whilst the funds mentioned can not be claimed, they are currently showing as available when querying the Allowance (10.) balance.

There are several legacy allowances relating to past bonding curves that are to be revoked. The most notable 174k and 196k, are legacy from previous CRV and BAL respectiveley.


Part A of this proposal will perform the following:

  • Withdraw all amUSDC & aPolUSDC
  • Withdraw all amDAI & aPolDAI
  • Withdraw all amUSDT & aPolUSDT
  • Transfer all withdrawn assets to Ethereum

Revoke the following allowances for the Aave Collector on Mainnet:

IERC20Token.approve(spender, 0);

token spender description
aENS 0xa426759e433224c2b04f6619ab44217dad626c6e Aave Collector Consolidation
aMANA 0xa426759e433224C2b04f6619aB44217DaD626c6e Aave Collector Consolidation
aUST 0xa426759e433224c2b04f6619ab44217dad626c6e Aave Collector Consolidation
sUSD 0xa426759e433224c2b04f6619ab44217dad626c6e Aave Collector Consolidation
aUSDC 0x04f90d449d4f8316edd6ef4f963b657f8444a4ca One Way Bonding Curve
aRAI 0xa426759e433224C2b04f6619aB44217DaD626c6e Aave Collector Consolidation
aZRX 0xa426759e433224C2b04f6619aB44217DaD626c6e Aave Collector Consolidation
aAMPL 0xa426759e433224C2b04f6619aB44217DaD626c6e Aave Collector Consolidation
aSUSD 0xa426759e433224C2b04f6619aB44217DaD626c6e Aave Collector Consolidation
aUSDC 0x46a1b7d4a2920270c7eb2c2db4df2259a109bcb4 CRV Bad Debt Repayment
TUSD 0xa426759e433224c2b04f6619ab44217dad626c6e Aave Collector Consolidation
BUSD 0xa426759e433224c2b04f6619ab44217dad626c6e Aave Collector Consolidation
aTUSD 0xa426759e433224C2b04f6619aB44217DaD626c6e Aave Collector Consolidation
aDPI 0xa426759e433224C2b04f6619aB44217DaD626c6e Aave Collector Consolidation
aFRAX 0xa426759e433224C2b04f6619aB44217DaD626c6e Aave Collector Consolidation
aBUSD 0xa426759e433224C2b04f6619aB44217DaD626c6e Aave Collector Consolidation

Part B of this proposal will perform the following:

  • Swap all DAI to USDT
  • Swap 0.70M USDC to USDT
  • Deposit USDT received from Polygon and swaps into Aave v3
  • Deposit USDC received from Polygon minus 0.70M into Aave v3

This is expected to acheive a minimum of the following aEthUSDC and aEthUSDT balances:

  • 4.81M aEthUSDC (3.5M for GSM, 1M for Centrifuge)
  • 3.73M aEthUSDT


TokenLogic and karpatkey receive no compensation beyond Aave protocol for the creation of this proposal. TokenLogic and karpatkey are both delegates within the Aave ecosystem.


Copyright and related rights waived via CC0.


Thanks for this proposal, are there any ongoing efforts for trying to restore GHO’s peg? What happened with the GHO committee efforts?


Ensuring that we are adequately prepared to launch the GSM and facilitate our RWA investments is an essential operational step, therefore we are glad to support this proposal.


Hi all, just catching up on this ARFC after reading the December update.

We put together the recent PYUSD proposal that just passed snapshot.

We work to make PYUSD more liquid in DeFi through a number of initiatives and are interested in getting PYUSD as an asset in the GSM. We’d be interested in setting up something similar to what we undertook with USDP in the MakerDAO PSM.

Please let us know if there’s a better place, or a more official format needed for potential implementation. We’re interested in further integrations with the Avara ecosystem and we’re set up to support on a number of fronts

Trident About


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