Futher Increase GHO Borrow Rate
01Summary
ARFC proposal to increase GHO borrow rate from 2.5% to 3% (50 basis points), with discounted rate for stkAave holders remaining at ~2.1%. Aims to strengthen GHO peg, enhance protocol revenue, and aligns with coordinated GHO support initiatives. Also greenlights ACI for direct-to-AIP process for future 50 bps increments every 30 days if peg stays outside 0.995-1.005 range, up to 5.5% maximum.
- Type
- parameter change
Key changes
- GHO borrow rate increase from 2.5% to 3.0% (50 basis points)(high)
- stkAave holder discount maintained at 30% (resulting in ~2.1% discounted borrow rate)(medium)
- Greenlighting ACI for direct-to-AIP process for 50 bps increments every 30 days if GHO peg outside 0.995-1.005 monthly average range, up to 5.5% maximum borrow rate(high)
Notable concerns
- This proposal delegates future rate adjustment authority to ACI under specified conditions, allowing up to 5.5% borrow rate without requiring full governance votes
Generated by Kvorum
02Description
Simple Summary
This ARFC proposes a further increase in the GHO borrow rate by 50 basis points (bps), raising it from 2.5% to 3%.
Motivation
The Aave community has previously recognized the importance of adjusting the GHO borrow rate to maintain the stability and health of the protocol. The motivations for this proposal are:
- Strengthening the GHO Peg: The prior adjustment to the GHO borrow rate resulted in a stronger GHO peg. An additional increase is anticipated to further bolster the peg and get closer to the target value.
- Enhancing GHO Revenue: By increasing the borrow rate, the protocol is expected to generate additional revenue from GHO borrowings.
- Coordinated Effort: This proposal aligns with other initiatives, including the GHO buy program set of AIPs, as part of a coordinated effort to support the GHO peg.
The discount for stkAave holders remains unchanged at 30%.
This proposal also greenlights the ACI for a direct-to-AIP process for 50 bps increments every 30 days, as long as the GHO peg is outside 0,995<>1,005 monthly average price range, up to 5.5% borrow rate.
Specification
- Asset: GHO
- Contract Address: 0x40D16FC0246aD3160Ccc09B8D0D3A2cD28aE6C2f
- Current Borrow Rate: 2.5%
- Proposed Borrow Rate: 3%
- New discounted Borrow Rate: ~2.1%
References
- Implementation: Ethereum
- Tests: Ethereum
- Snapshot
- Discussion
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The proposal follows the standard Aave governance execution pattern: the on-chain action is a single execute() call to a payload contract address, with no further arguments decoded at this level. The actual parameter changes (GHO borrow rate from 2.5% to 3%, discount rate unchanged at 30%) are expected to be encoded inside that payload contract's bytecode/logic, which is not visible in the decoded calldata provided here. Because the only decoded action is an opaque execute() fallback call, I cannot directly verify the specific numeric values (50 bps increase, 3% target rate, 30% discount, 5.5% ceiling) against on-chain calldata — there is nothing in the decoded arguments to compare against or contradict the prose. This is typical and expected for Aave AIP payloads reviewed at this level of decoding, not evidence of a mismatch. Given the lack of visibility into the payload's internal logic, I cannot confirm or deny the described rate changes, so confidence in this comparison is low. No explicit contradictions, extra actions, or omissions are visible between the description and the single decoded action, so I report 'consistent' with low confidence rather than flagging speculative discrepancies. Delegates relying on this analysis should refer to the linked implementation contract source code for full verification of the payload's internal logic.
Generated by Kvorum
04Actions
- Target
- 0x46d0…1b09
- Value
- 0 wei
- Function
- fallback()
- Arguments
{}- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| 320x329c…3ed4 | For | 117.2K | 23.48% | — | 3y ago |
| 070x0703…961b | For | 88.1K | 17.64% | — | 3y ago |
| 130x13bd…8548 | For | 61.3K | 12.28% | — | 3y ago |
| 2C0x2cc1…4df1 | For | 43.7K | 8.75% | — | 3y ago |
| B90xb933…8dd1 | For | 42K | 8.42% | — | 3y ago |
| EA0xea17…6676 | For | 38.9K | 7.80% | — | 3y ago |
| EZezr3al.eth0x8659…7d0e | For | 37.9K | 7.60% | — | 3y ago |
| 570x57ab…2922 | For | 25.9K | 5.20% | — | 3y ago |
| E40xe459…e666 | For | 20K | 4.01% | — | 3y ago |
| 870x8787…ea52 | For | 18.1K | 3.63% | — | 3y ago |
| 180x1855…98ba | For | 5K | 1.01% | — | 3y ago |
| 5A0x5acb…eedf | Against | 310.8 | 0.06% | — | 3y ago |
| 300x305e…09ac | For | 300.5 | 0.06% | — | 3y ago |
| 300x30bc…2085 | Against | 123.6 | 0.02% | — | 3y ago |
| 170x17f2…0786 | For | 110 | 0.02% | — | 3y ago |
| 0X0xmcfly.eth0xafd5…a0a0 | For | 92.1 | 0.02% | — | 3y ago |
| 5B0x5b85…a97a | Against | 19 | 0.00% | — | 3y ago |
| 010x019e…2903 | For | 2 | 0.00% | — | 3y ago |
| 6B0x6b7c…ca6d | For | 1.6 | 0.00% | — | 3y ago |
| 200x2031…c4b2 | For | 1.5 | 0.00% | — | 3y ago |
| 9E0x9e4d…9636 | For | 1.3 | 0.00% | — | 3y ago |
| AB0xabc6…bfce | For | 1.2 | 0.00% | — | 3y ago |
| 7B0x7b49…7f8a | For | 1.1 | 0.00% | — | 3y ago |
| 360x3691…dc51 | For | 1.1 | 0.00% | — | 3y ago |
| C70xc724…b01d | For | 1 | 0.00% | — | 3y ago |
| CF0xcf8c…3620 | For | 1 | 0.00% | — | 3y ago |
| 740x74a2…c125 | For | 1 | 0.00% | — | 3y ago |
| 790x794b…9d17 | For | 1 | 0.00% | — | 3y ago |
| 180x187f…85f0 | For | 1 | 0.00% | — | 3y ago |
| 370x3744…b243 | For | 1 | 0.00% | — | 3y ago |
| 700x70df…1889 | For | 1 | 0.00% | — | 3y ago |
| 690x6974…6272 | For | 1 | 0.00% | — | 3y ago |
| 570x5762…a752 | For | 1 | 0.00% | — | 3y ago |
| 890x894d…6892 | For | 1 | 0.00% | — | 3y ago |
| F50xf5a1…6ba2 | For | 1 | 0.00% | — | 3y ago |
| 100x1028…bd3d | For | 0.7 | 0.00% | — | 3y ago |
| BD0xbd99…2ff5 | For | 0.6 | 0.00% | — | 3y ago |
| 2A0x2a71…fcf0 | For | 0.6 | 0.00% | — | 3y ago |
| 1E0x1e17…baac | For | 0.5 | 0.00% | — | 3y ago |
| 1F0x1f89…115d | For | 0.5 | 0.00% | — | 3y ago |
| 280x2872…10f7 | For | 0.5 | 0.00% | — | 3y ago |
| FE0xfe06…10d2 | For | 0.5 | 0.00% | — | 3y ago |
| 200x2035…1685 | For | 0.5 | 0.00% | — | 3y ago |
| F80xf8fc…6d4b | For | 0.5 | 0.00% | — | 3y ago |
| C40xc491…8b24 | For | 0.5 | 0.00% | — | 3y ago |
| 530x53ff…1b02 | For | 0.4 | 0.00% | — | 3y ago |
| A70xa7a3…b532 | For | 0.3 | 0.00% | — | 3y ago |
| A00xa0ef…2d56 | For | 0.3 | 0.00% | — | 3y ago |
| 510x511a…302d | For | 0.2 | 0.00% | — | 3y ago |
| 250x25fd…0b0c | For | 0.2 | 0.00% | — | 3y ago |
07Forum
No forum thread is confidently linked to this proposal.
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