[TEMP CHECK] GHO Stability Module Launch
Vote Result: YES
Rationale
Activating the GSM right now will preserve the stability of exchange rates and it has been a long time coming. The GSM caps suggested are low and can help mitigate any temporary blips > 1 back to peg, and can reduce risk of unexpected GHO minting via GSM and potential associated market selling. The Buy/Sell fees are low enough to allow for peg stability but also high enough to disincentivise the USDC and USDT pools from being drained.
The only concern is that the risk providers have recommended enabling the GSM when GHO is consistently trading within ($0.995, $1.005) to avoid GSM reserve depletion and this has not been the case - GHO is currently in the range of $0.983. However, this is mitigated by the low GSM caps that have been set.
Therefore, we will vote YES in favour of Option B.
Note: We were not able to vote for this proposal since our voting power is to be re-delegated following the implementation of Aave Governance v3, but have posted our rationale here regardless.