Introducing: GHO

Really good analysis, thanks for this.

The interest rate should be derived from parameters like risk of the collateral used to mint GHO, essentially the same risk scale the protocol uses today that is constantly updated as market conditions change. The ‘virtual utilisation’ in this case is the max amount of collateral for that asset that can be used to mint GHO across Aave.

Interest rates set by the DAO aren’t as responsive to market conditions as algorithmically controlled ones are. It’s safer for the protocol and users to use an algo IR curve.

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