# \[ARFC\] Upgrade Safety Module with StkGHO

**URL:** <https://governance.aave.com/t/arfc-upgrade-safety-module-with-stkgho/15635>\
**Category:** Governance\
**Created:** [November 21, 2023, 9:29pm UTC](https://governance.aave.com/t/arfc-upgrade-safety-module-with-stkgho/15635 "2023-11-21T21:29:41Z")\
**Posts on this page:** 1\
**Showing post:** 7

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**Author:** ![Gauntlet](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/gauntlet/32/4064_2.png) [@Gauntlet](https://governance.aave.com/u/Gauntlet)\
**Post date:** [November 30, 2023, 5:50pm UTC](https://governance.aave.com/t/arfc-upgrade-safety-module-with-stkgho/15635/7 "2023-11-30T17:50:14Z")

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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.

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_[View the full topic](https://governance.aave.com/t/arfc-upgrade-safety-module-with-stkgho/15635)._