Aave News #101 - Let's GHO
Ghost wearing a purple GHO hat in front of a GHO background.
Ghost wearing a purple GHO hat in front of a GHO background.

It’s GHO time. After originally being greenlit by the community last July, and through much hard work across the community, numerous governance discussions, and votes to gain community consensus on initial parameters and structure, the AIP to launch GHO on mainnet is now live for voting! If you’re eligible, be sure to vote 👻

GHO will be native to the Aave protocol, over collateralized and fully decentralized with control in the hands of the Aave DAO. Below are some of the governance discussions and TEMP CHECKS that have taken place and contributed to how GHO looks today.

  • Greenlight for GHO - The original Snapshot vote that started this process almost 1 year ago!

  • GHO Genesis Parameters - GHO will launch with a 1.5% borrow rate, a Bucket Capacity of $100 Million and a 30% discount for stkAAVE holders. These parameters can be updated by governance.

  • FlashMinter Facilitator - An approval of the second GHO Facilitator after the Aave V3 Ethereum Pool. Facilitators are one of the unique aspects to GHO - instead of having one predetermined minting mechanism, the Aave DAO can approve any strategy to mint GHO. Facilitators are approved by Aave governance based on their strategy and Bucket Capacity indicating the maximum GHO amount they can mint.

  • GHO Liquidity Pools - An initial liquidity strategy that outlines primary and secondary pools for GHO along with considerations for including some pools in the Safety Module. The proposed pools leverage Aave’s strategic holdings of veBAL and include pairing GHO with the USD Aave Boosted Pool, LUSD and a LST.

  • GHO Stewards: Agile Parameter Changes - Introducing GHO Stewards to enable agile risk management and help to maintain the peg. Initially the GHO Stewards will be made up of Aave DAO’s two risk service providers: Gauntlet and Chaos Labs.

  • Allocating part of GHO Revenue to Safety Incentives - Splitting revenue generated from GHO between the Aave treasury and Aave Safety Incentives so Aave stakers will earn both AAVE and GHO. This is a step towards sustainability for the protocol and introduces “real yield” for stakers. (Note: this still needs to go through the AIP stage to be implemented so will not be included at launch.)

  • GHO Stability Module - Introducing a Peg Stability Module for GHO that will allow for the conversion of tokens at a predetermined rate to help maintain the peg.

@0xboka shared a detailed infographic if you want to dive deeper into GHO.

With the ACI’s vote, the AIP has now reached quorum and is on track to be executed this Friday, July 15th at 11:30 AM EST | 4:30pm GMT | 9:00pm IST.

Take a look at some of the GHO related grants AGD has awarded over the past few months, and keep a look out for more info on GHO grants soon. Check out the GHO prize winners from hackathons we have sponsored in Tokyo, Lisbon and Prague.

  • Dullahan - Paladin is taking their stkAAVE vault to the next level by adding the utility from the GHO discount minting. The vault will auto-compound deposited stkAAVE, create a market for the GHO discount minting, and help onboard less crypto-savvy users to mint GHO.

  • GHO Explainer Videos - a five part explainer series by Cryptoversidad covering everything about GHO from the risks, what Facilitators are all about and the value that GHO brings.

  • Risk Radar by Into the Block - the dashboard will include custom-made risk indicators  and be freely accessible to empower Aave and GHO users to make informed decisions about the protocol and their positions.

  • Console by Brahma.fi - Console will help to onboard users to Aave, improve security, and enable non-custodial asset management. Console will streamline GHO minting and the position rebalancing process by leveraging Safe and Gelato.

Who is excited? Let’s GHO!

Mint this post to be a part of this historic event in the Aave community 👻

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