Introduction of GHO into the SM could create a demand vector for GHO. There are some other considerations that could become important as well.
- GSM reserves could need replenishing.
- Supposing GSM were active, depegs in GHO during a drawdown could bring about unidirectional reserve changes in the GSM.
- Users receiving GHO from the safety module may swap out into USDC/USDT via the GSM.
- stkGHO as a GHO demand vector could become less effective in the future.
- stkGHO may be a large demand vector for GHO in the beginning because stkGHO in safety module yield is large → stkGHO cap could get filled quickly → high rewards may make cap usage sticky → less chances for new users to participate in stkGHO → stkGHO as a GHO demand vector could become less effective down the road.
- Raising caps for stkGHO in safety module may need to balance and factor in migration of external liquidity.