[ARFC] GHO - Increase Borrow Rate
Vote Result: YES
Rationale
While in the long-term, increasing the utility of GHO and generating organic demand are the only ways to ensure the peg remains solid, increasing the borrow rate to reduce the incentive to mint GHO relative to other stablecoins will at least get GHO in line with other stablecoins. It will still be hard enough to hold the peg but this measure to a certain extent limits the downward pressure on the peg, especially when Chaos Labs and Gauntlet do not think this adds too much risk. While being cognizant of the fact that increasing the borrow rate will not bring the peg back to parity and limits GHO’s growth, we think limiting any sources of peg deviation (e.g., discount to other stablecoins) is paramount to begin with, and therefore will vote YES in favour of this proposal.