KVORUM
aaveSource: Aave governance v3 · #50

GHO Borrow Rate Increase

executedMar 16, 2024, 04:23 PM UTCby570x57ab…2922

01Summary

AISummary by Kvorumclaude-haiku-4-5

Increase GHO stablecoin borrow rate from 7.22% APR to 7.92% APR (70 basis points), with discounted rate rising from ~5.24% to ~5.6% APY, to align with competitive market rates and improve protocol revenue while maintaining peg stability.

Type
parameter change

Key changes

  • GHO non-discounted borrow rate increased from 7.22% APR to 7.92% APR (0.7% increase)(high)
  • GHO discounted borrow rate increased to approximately 5.6% APY (30% discount maintained)(high)
  • Rate adjustment authorized within AIP-381 framework allowing up to 100 bps increases every 7 days up to 9.5% APR maximum(medium)

Notable concerns

  • GHO peg has shown improvement but remains below target 0.995<>1.005 price range
  • Proposed rate of 7.92% APR remains below average market rates (DAI 10.45%, LUSD 10.89%, USDC 10.91%, USDT 11.87%)
  • ACI and service providers retain discretionary authority for further rate adjustments without additional governance votes
Contracts0xeab5ffecc90082d75e0a1de43dddb1ec4ac9bb9f
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

250 words

Simple Summary

This AIP will increase GHO borrow rate by 0.7% APR.

Motivation

With the evolving market dynamics and the increasing popularity of GHO as a stablecoin option, it is necessary to maintain competitiveness by aligning borrowing costs with average market rates. The current GHO borrow rate of 7.22% APR (~7.48% APY) no longer meets this requirement.

AIP-381 allows for 100 bps increases in the GHO borrow rate every 7 days while maintaining rates up to 9.5% APR if the monthly average price of GHO stays outside a 0,995<>1,005 price range. The peg has shown improvement but remains below the target.

Monthly Average Borrow Cost (APR)Stablecoin
10.45%DAI
10.89%LUSD
10.91%USDC
11.87%USDT

Source: TokenLogic | GHO Analytics

Increasing the non-discounted borrow rate of GHO from 7.22% to 7.92% is proposed to remain competitive, increase protocol revenue, and not negatively affect the peg.

Specification

  • Current Borrow Rate: 7.22% APR - ~7.48% APY (non-discounted)
  • Proposed Borrow Rate: 7.92% - ~8% APY (non-discounted)
  • Discounted Rates: 30% discount
  • New Discounted Borrow Rate:
    • GHO: ~5.6% APY

If required, ACI will monitor the GHO peg and use authorized discretion for further rate adjustments in coordination with @karpatkey_TokenLogic Aave finance SPs.

References

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

AIMismatch analysis by Kvorumlow confidenceclaude-sonnet-5
Consistent

The proposal describes a specific, quantifiable action: raising GHO's non-discounted borrow rate from 7.22% to 7.92% APR (and the resulting ~5.6% APY discounted rate). However, the only decoded on-chain action is a generic execute() call to a payload contract with no decoded arguments (decoded_function is 'fallback()'). This is the typical structure for Aave governance proposals, where the payload contract's constructor or execute() body contains hard-coded logic (e.g., calling PoolConfigurator or GhoInterestRateStrategy setters) that isn't surfaced in the decoded calldata shown here. Because the calldata provides no visible parameters, I cannot verify or contradict the specific rate figures cited in the description — I can only confirm that a single governance payload execution occurs, consistent with the proposal's stated intent to change GHO's rate via a linked implementation contract. There is no evidence of a mismatch (no wrong target, no extra/missing action, no contradicting values), but there is also no way to confirm the exact 0.7% APR change from calldata alone. Given the opacity of the single execute() call, confidence in this comparison is low, and I default to 'consistent' since nothing in the available data contradicts the description — the discrepancy checks (target, values, omissions) cannot be evaluated against opaque calldata, so no discrepancies are flagged of the type this pipeline is designed to catch (e.g., wrong recipient, wrong magnitude visible in decoded args).

Generated by Kvorum
model: claude-sonnet-5
provider: anthropic
profile: anthropic-strong-v1
prompt: v1.0
generated: 2mo ago
Review the decoded actions ↗

04Actions

1 total
#0fallback()chain 0x1
Target
0xeab5…bb9f
Value
0 wei
Function
fallback()
Arguments
{}
Calldata

05Tally

Summed from votes

Voters0
VP participating0
Outcome (current)—
Current support—

06Voters

0 total

No votes recorded yet.

07Forum

No forum thread is confidently linked to this proposal.