Introducing Range Protocol's GHO Vaults

Aave Grants DAO
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We at Range Protocol are proud to update you on our GHO Vaults for USDC and USDT, which have been consistently delivering robust yields. As we move forward, we are excited to scale these offerings, further enhancing the liquidity of GHO stablecoin.

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Upcoming Incentive Campaign:
We’re excited to announce our new incentive campaign, from January 25 to February 25, 2024, designed to incentivize the GHO community:

Vault Operations and Proactive GHO Management:

  • Diverse Yield Streams: Our vaults offer yields from multiple sources, including Aave lending yield, Uniswap trading fees, and Aave token incentives.
  • Proactive GHO Buying: The vault can acquire GHO in two ways -
  1. Borrow from Aave
  2. Buy from the Uniswap Pool
    A key component of the strategy for the vault will be systematic buying of GHO, especially vital when supply caps are hit. This proactive approach aims to push GHO closer to its peg, enhancing its stability and market presence.
  • Vault Mechanics: The vaults function by allowing users to deposit USDC or USDT, which our experienced managers then use to engage in yield-generating strategies. The vault dynamically adjusts these strategies based on market conditions to optimize returns.
  • Liquidity Management: To ensure user convenience, approximately 10% of the vault balance is maintained as passive liquidity for immediate withdrawal needs and capital efficiency.
  • Audited and Transparent: Our contracts are audited and transparent, ensuring a secure and trustworthy investment environment. GHO vault have been audited by Veridise
    Range-GHO-Vault/audits/Veridise-Audit-GHO.pdf at main · Range-Protocol/Range-GHO-Vault · GitHub
    Aside from that, the core codebase has been audited by Halborn, Salusec, Veridise and Certik
    contracts/audits at master · Range-Protocol/contracts · GitHub

Detailed Vault Operations and User Interactions:

  1. Liquidity Providers (LPs):

    • Mint Function: LPs deposit USDC, resulting in the issuance of vault shares.
    • Burn Function: Allows LPs to redeem their USDC holdings.

  2. Vault Managers:

    • Swap Function: Balances USDC and GHO within the vault.
    • Supply Collateral: Leverages USDC on Aave for collateralized positions.
    • Mint GHO: Involves creating GHO tokens as debt against the deposited collateral on Aave.
    • Burn GHO: Involves burning GHO tokens to repay the debt, freeing up USDC collateral on Aave.

    Each of these functions is executed with careful consideration of market conditions and vault health, ensuring the stability and responsiveness of the vault to market dynamics.

Future Expansion with USDY:

In our commitment to advancing the GHO ecosystem, we are planning to incentivize GHO’s liquidity against USDY starting next week, an RWA-backed stablecoin managed by Ondo, which we believe will further enhance the stability and appeal of GHO. More details will be out later.

We look forward to Aave community’s feedback and participation in our vaults and in the upcoming campaign. For more information, please visit Range Launches GHO Liquidity Vaults | by Range Protocol | Nov, 2023 | Medium

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Very cool to see GHO getting some traction in protocols like Range.
Supportive!

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We are in favour of Range’s effort to utilise GHO in its incentive program. Initiatives such as this play a key role in furthering Aave’s ambitions for GHO, therefore we are very supportive.

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AAVE Incentives are live till 25th Feb 2024

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Thank you for introducing Range and keeping the community updated on your GHO Vaults. We are excited to have you contributing to the Aave ecosystem and supporting GHO’s liquidity.

This confirms @RangeProtocol is a grantee - they received a grant from Aave Grants in July 2023.

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