[Direct-to-AIP] Increase GHO GSM Capacity on Plasma

[TokenLogic]

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title: [Direct-to-AIP] Increase GHO GSM Capacity on Plasma
author: @TokenLogic
created: 2026-03-21

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Summary

This publication proposes minting an additional 50M GHO from the GhoDirectFacilitator on Ethereum and bridging it to the Plasma GSM via Chainlink CCIP, bringing the total GHO bridged to Plasma to 100M. Additionally, this proposal will increase rate limits of GHO bridges across any network from 1.5M to 5.0M and a refill rate from 300 to 1,000 GHO per second.

Motivation

Since the initial deployment of GHO on Plasma (AIP-452), the RemoteGSM has seen strong demand. The full 50M GHO minted into the GhoReserve on Plasma has been consumed, indicating healthy adoption with almost 30M of net GHO swapped via the remoteGSM in the first 2 weeks, representing sustained demand for GHO on the Plasma network.

Plasma’s active incentive program continues to drive growth, and further expansion of GHOs is expected. Without additional GHO supply in the RemoteGSM reserve, users cannot mint GHO via the GSM, limiting the network’s ability to absorb demand and maintain GHO’s peg stability on Plasma.

Specification

1. Mint 50,000,000 GHO

Mint 50M GHO from the GhoDirectFacilitator into the GhoReserve on Ethereum.

Parameter	Value
Facilitator	0x2bd010Ab5393AB51b601B99C4B33ba148d9466e9
GhoReserve (Ethereum)	0x54C58157DeF387A880AE62332D1445f03adbE7E9
Mint Amount	50,000,000 GHO
New Facilitator Bucket Level	100,000,000 GHO (100% of capacity)

2. Bridge 50,000,000 GHO to Plasma via CCIP

Bridge the minted GHO from the Ethereum GhoReserve to the Plasma Collector using Chainlink CCIP.

Parameter	Value
Source Chain	Ethereum
Destination Chain	Plasma (CCIP selector: 9335212494177455608)
GHO CCIP Token Pool (Ethereum)	0x06179f7C1be40863405f374E7f5F8806c728660A
GHO CCIP Token Pool (Plasma)	0x360d8aa8F6b09B7BC57aF34db2Eb84dD87bf4d12
Destination (Plasma GSM)	0x6aC541605b0317dE076C9FeC2842902c844dEa74
Amount	50,000,000 GHO

Additionally, after a trial period with a maximum bridge amount of 1.5M across any networks, and a refill rate of 300 GHO per second, we are increasing the amounts to a maximum bridge amount of 5.0M and a refill rate of 1,000 GHO per second.

Disclosure

TokenLogic is an active service provider to the Aave DAO, the beneficiary of stream 100072 and the KPI as outlined in this publication. The scope of this engagement is available via this forum proposal.

TokenLogic supports and maintains an independent delegate voting platform within the Aave community.

TokenLogic and associated entities have no undisclosed material conflicts of interest at the time of submission.

Next Steps

1. Using the Direct-to-AIP process, submit AIP for vote.

Copyright

Copyright and related rights waived via CC0.

[MconnectDAO]

This proposal comes at a time when Aave’s governance is already under scrutiny BGD Labs and ACI have both exited citing governance concerns. In that context, a Direct-to-AIP proposal from a paid service provider bypassing standard review stages deserves more community attention, not less. @MconnectDAO

[LlamaRisk]

Summary

LlamaRisk supports minting an additional 50M GHO on Ethereum and bridging it to the Plasma GSM, as this expansion would further reinforce GHO’s peg buffer and expansion on Plasma. The strong demand for GHO, evidenced by 60% of bridged supply being swapped into USDT0 via the GSM, highlights the effectiveness of this mechanism. However, as the GSM scales toward 100M in USDT0 deposits, it will represent a more significant share of the Aave Plasma USDT0 reserve. This introduces increased sensitivity to large withdrawals, which could materially spike utilization rates. Accordingly, while the expansion is justified under current conditions, GSM growth should be closely monitored, particularly before considering any further increases beyond this level.

GSM Performance

Plasma currently hosts 64.9M GHO in circulation, making it the second-largest network after Ethereum (310.6M). Of the initial 50M GHO bridged to Plasma into the GhoReserve, nearly 60% has entered circulation via users depositing USDT0 for GHO. This is further driven by GHO Aave lending incentives on Plasma, highlighting strong demand for GHO within the ecosystem.

Source: LlamaRisk, March 26, 2025

GHO Volatility

Since its launch, GHO has generally traded at a minimal discount, averaging around 2 basis points below peg. In March, however, GHO briefly traded at a premium for the first time, driven by incentive programs on Plasma that boosted GHO demand. Following this, the introduction of the GHO–USDT0 GSM, which currently holds $29.9M in USDT0, has strengthened peg stability. This is evident in March, when GHO briefly traded at a slight premium for the first time, driven by increased GHO demand from incentives, indicating improved market balance. A GSM backed by substantial USDT0 liquidity reinforces the peg by offering reliable 1:1 swap liquidity, helping absorb demand imbalances and reduce price deviations.

Source: LlamaRisk, March 26, 2025

USDT0 Supply Impact

The USDT0 deposited in the GSM and subsequently supplied to Aave’s Plasma USDT0 reserve (which holds $1.6B in deposits) accounts for only a small share of the overall market, representing approximately 1.87%. At current capacity, a full withdrawal from GSM would increase utilization by about 1.6%, bringing it to 90.44% based on total borrows as of March 26, 2026. This remains below the optimal utilization threshold of 92%, indicating limited immediate risk.

However, if GSM expands to its projected capacity of 100M in USDT0 deposits, its market share would rise to nearly 6%. At that level, GSM could have a more pronounced impact on both supply APR during large inflows and utilization spikes during withdrawals. This underscores the importance of closely monitoring GSM as it scales.

Disclaimer

This review was independently prepared by LlamaRisk, a DeFi risk service provider funded in part by the Aave DAO. LlamaRisk is not directly affiliated with the protocol(s) reviewed in this assessment and did not receive any compensation from the protocol(s) or their affiliated entities for this work.

The information provided should not be construed as legal, financial, tax, or professional advice.