sGho Launch
01Summary
Upgrade sGHO to a new ERC-4626 compliant yield-accruing savings product with a fixed 4.25% APR rate, introduce the sGHO Steward governance mechanism, establish a 10M GHO allowance for rewards, and consolidate eight boost rewards into a single native rate while maintaining one transitional boost.
- Type
- protocol addition
- Funding
- $10000000
Key changes
- Set Aave Savings Rate (ASR) to fixed 4.25% APR, which is 50 basis points above the Sky Savings Rate (3.75%)(high)
- Migrate sGHO from Merit-based off-chain reward system to native on-chain ERC-4626 yield accrual model for improved composability(high)
- Consolidate eight boost rewards into one transitional boost within the native 4.25% APR rate(high)
- Establish sGHO Steward as the rate governance mechanism with FIXED_RATE_MANAGER_ROLE and SUPPLY_CAP_MANAGER_ROLE managed by Governance LVL 1 Executor(high)
- Introduce GhoRouter contract to enable single-transaction conversion from USDC to sGHO(medium)
- Set supply cap at 400,000,000 GHO with maximum rate contract cap at 50% APR(medium)
- Grant PAUSE_GUARDIAN_ROLE to PROTOCOL_GUARDIAN SAFE and TOKEN_RESCUER_ROLE to Governance LVL 1 Executor(medium)
Notable concerns
- Migration from current sGHO (stkGHO rebranded) requires active user participation to move to new contract
- Consolidation of eight boosts to one may impact users previously earning from multiple boost categories
- Fixed 4.25% rate sustainability depends on Aave DAO revenue framework remaining stable
- New composable design introduces smart contract integration risks with external protocols
Generated by Kvorum
02Description
Simple Summary
This publication provides an overview of the new native on-chain yield-accruing sGHO savings product upgrade. Within, we define the initial parameter configuration, present the migration process from the current sGHO (stkGHO rebranded), and introduce the new sGHO admin steward role.
The proposal sets a fixed Aave Savings Rate (ASR) of 4.25% APR (50 basis points above the Sky Savings Rate), refines the boost program from 8 boosts to 1 transitional boost, establishes the sGHO Steward as the rate governance mechanism, and defines an aggressive migration schedule from the legacy sGHO contract.
Motivation
GHO has reached an all-time high circulating supply of 404.7M across eight chains, with sGHO deposits totalling 304.6M. This growth, driven primarily by the @ACI powered savings product, validates the demand for a yield-bearing GHO instrument. The Aave Team has done a tremendous job managing the Merit-based reward system that fuelled this trajectory.
However, the current sGHO implementation presents structural limitations that constrain further growth:
Composability unlock. The current Merit-based distribution, while highly effective for bootstrapping, relies on an off-chain reward model, making it difficult for external protocols to integrate natively. Moving to ERC-4626 means yield accrues directly in the share-to-asset conversion rate, making sGHO instantly composable across DeFi lending protocols, yield aggregators, and centralised exchanges.
Streamlined yield story. The eight-boost system ACI designed was instrumental in driving targeted behaviours during the growth phase. With sGHO now at scale, consolidating seven of those boosts into the native rate creates a simpler, more legible value proposition for the next wave of integrators and depositors, while retaining one strategic boost to continue rewarding core Aave ecosystem alignment.
Frictionless onboarding. The introduction of the GhoRouter contract eliminates multi-step conversion friction. Users can go from USDC to sGHO in a single transaction, dramatically lowering the barrier to entry for new depositors and enabling seamless integration paths for partners.
Market opportunity. With the Sky Savings Rate at 3.75% APR and broader DeFi yields compressed, a competitive fixed rate positions sGHO to absorb significant stablecoin demand. At the current sGHO deposit base of ~305M, incoming large allocations would compress the Merit-based yield from ~4.68% to approximately 3.70% at a deposit base of 385 M. Setting the native rate at 4.25% APR provides a clear premium over the competing sUSDS product while remaining sustainable within the DAO’s revenue framework and other yield products in this rate environment.
Specification
| Parameter | Value |
|---|---|
| Target Rate (ASR) | 4.25% APR (425 basis points) |
| Rate Type | Fixed |
| Sky Savings Rate (reference) | 3.75% APR |
| Premium over SSR | 50 basis points |
| Steward Formula | amplification = 0, floatRate = 0, fixedRate = 425 |
| Maximum Rate (contract cap) | 50% APR (5,000 bps) |
| Supply Cap | 400,000,000 |
| Pause Guardian | 0x2CFe3ec4d5a6811f4B8067F0DE7e47DfA938Aa30 |
Create a 10M Allowance of GHO from the Collector to the AFC SAFE in order to handle rewards distribution.
Grant the sGho PAUSE_GUARDIAN_ROLE to the PROTOCOL_GUARDIAN SAFE. Grant the sGho YIELD_MANAGER_ROLE to the sGhoSteward contract.
Grant the sGhoSteward FIXED_RATE_MANAGER_ROLE to the Governance LVL 1 Executor. Grant the sGhoSteward SUPPLY_CAP_MANAGER_ROLE to the Governance LVL 1 Executor. Grant the sGho TOKEN_RESCUER_ROLE to the Governance LVL 1 Executor.
References
- Implementation: AaveV3Ethereum
- Tests: AaveV3Ethereum
- Snapshot
- Discussion
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The decoded calldata contains only one action: a call to execute() on what appears to be a governance payload contract, with no further decoded sub-actions or arguments. This is the standard pattern used in Aave governance proposals, where a dedicated payload contract encapsulates all the granular logic (rate configuration, role grants, allowance creation, cap updates, migration steps) inside its own execute() function, which is not exposed as separate calldata to the governance executor. Because none of the specific parameters (4.25% rate, 400M supply cap, 50% rate cap, Pause Guardian address, 10M GHO allowance, and the five role grants) appear as decoded arguments, I cannot directly verify them against the prose. However, this opacity is expected and consistent with how Aave DAO proposals of this type are typically structured, so it does not itself constitute evidence of a mismatch - it is simply insufficient information to compare. Given the single-action, argument-less nature of the calldata, confidence in this comparison is low, and no specific value, target, or role mismatch can be identified or ruled out. I therefore do not flag any discrepancies, but note that a full verification would require inspecting the referenced payload contract's source/bytecode (linked in the proposal) rather than relying on the decoded governance calldata alone.
Generated by Kvorum
04Actions
- Target
- 0x4b26…9061
- Value
- 0 wei
- Function
- fallback()
- Arguments
{}- Calldata
05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
No forum thread is confidently linked to this proposal.
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