[ARFC] Increase GHO Borrow Rate
Vote Result: YES
Rationale
Having looked at all opinions in the forum, we are of the opinion that increasing the interest rate at this point would be the first step towards repegging GHO. Firstly, early borrowers would have likely sold the borrowed GHO, leading to the depeg. Increasing the interest rate would lead them to buy back GHO and repay the debt, helping with the repeg. Furthermore, according to both Gauntlet and Chaos Labs, increasing the IR would not add additional risk. The counterpoints are to 1) wait for the GSM to be implemented and 2) that a 100 bps increase in interest rates may not be enough to kickstart a repayment of existing debt and may only stop or slow down demand for new debt creation. However, for 1), the GSM is not ready yet and will take time to be implemented, opening up the need for a short-term solution, and for 2), the 2.5% is still a better interest rate than that for other stables so it is not necessary that a capital flight will occur. Therefore, we will vote YES in favour of this proposal.