GHO - Increase Borrow Rate
01Summary
Proposal to increase GHO borrow rate from 3.00% to 4.72% (with ~3.31% for stkAave holders) to improve GHO's peg stability by reducing minting incentives, prioritizing peg maintenance over growth.
- Type
- parameter change
Key changes
- GHO borrow rate increased from 3.00% to 4.72%(high)
- stkAave holder discounted borrow rate increased to approximately 3.31% (30% discount maintained)(high)
- Aave Facilitator Bucket Level remains at 35.00M units(low)
- Establishes framework for future 50 bps increments every 30 days if GHO peg remains outside 0.995-1.005 range, up to maximum 5.5% borrow rate(medium)
Notable concerns
- GHO growth expected to slow as a result of rate increase
- Future automatic rate increases up to 5.5% may be implemented through direct-to-AIP process if peg remains unstable
Generated by Kvorum
02Description
Simple Summary
This publication proposes increasing the GHO Borrow Rate from 3.00% to 4.72%, slightly below the proposed sDAI rate.
Motivation
By increasing the borrow rate to 4.72%, the goal is to improve the peg by reducing the incentive to mint GHO relative to other stable coins. As a result, GHO's growth is expected to slow. This publication prioritises returning GHO to peg over growth.
After implementing this proposal, the community can continue with the current plan, 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: 3.00% Proposed Borrow Rate: 4.72% New discounted Borrow Rate: ~3.31%
The discount for stkAave holders remains unchanged at 30%. The Aave Facilitator Bucket Level is to remain at 35.00M units
References
- Implementation: AaveV3Ethereum
- Tests: AaveV3Ethereum
- Snapshot
- Discussion
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The proposal description details a specific GHO borrow rate change (3.00% -> 4.72%), an implied discounted rate (~3.31%) with unchanged 30% stkAave discount, and an unchanged 35M facilitator bucket cap. However, the only decoded on-chain action provided is a single call to forwardPayloadForExecution, which is a generic governance-forwarding function used by Aave's cross-chain governance system to trigger execution of a separate payload contract (referenced by an id/address). This action does not itself contain the numeric parameters (borrow rate, discount, bucket cap) that the description discusses — those would be encoded inside the target payload contract's own execution logic, which is not decoded here. Because the calldata is opaque at this level (it merely routes execution to another contract), I cannot directly verify or refute the specific rate figures, discount, or bucket cap claims against on-chain values. This is a common and expected pattern for Aave governance proposals that execute via a payload contract referenced in the description's 'Implementation' link. Given the lack of visibility into the actual parameter-setting calls, confidence is low, and no discrepancy is asserted — the single forwarding action is consistent with the general mechanism of an Aave AIP execution, but does not provide enough detail to confirm the specific numeric claims in the description.
Generated by Kvorum
04Actions
- Target
- 0x9aee…2bc7
- Value
- 0 wei
- Function
- forwardPayloadForExecution((uint256,uint8,address,uint40))
- Arguments
{ "0": [ "1", "1", "0xdAbad81aF85554E9ae636395611C58F7eC1aAEc5", "10" ] }- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| 320x329c…3ed4 | For | 116.5K | 25.64% | — | 3y ago |
| 130x13bd…8548 | For | 61.3K | 13.49% | — | 3y ago |
| 230x2331…7e73 | For | 60K | 13.21% | — | 3y ago |
| 2C0x2cc1…4df1 | For | 43.7K | 9.61% | — | 3y ago |
| B90xb933…8dd1 | For | 42.4K | 9.33% | — | 3y ago |
| EA0xea17…6676 | For | 38.8K | 8.53% | — | 3y ago |
| EZezr3al.eth0x8659…7d0e | For | 38K | 8.37% | — | 3y ago |
| 570x57ab…2922 | For | 27.1K | 5.97% | — | 3y ago |
| 870x8787…ea52 | For | 21.1K | 4.64% | — | 3y ago |
| 180x1855…98ba | For | 5K | 1.11% | — | 3y ago |
| 770x775c…d75b | For | 346.2 | 0.08% | — | 3y ago |
| DF0xdf06…4977 | For | 27.3 | 0.01% | — | 3y ago |
| 7E0x7eb9…69b9 | For | 17.4 | 0.00% | — | 3y ago |
| 540x54c3…8f57 | For | 5.3 | 0.00% | — | 3y ago |
| 1B0x1b15…c121 | For | 5.2 | 0.00% | — | 3y ago |
| 800x809f…20e4 | For | 3.3 | 0.00% | — | 3y ago |
| 000x0034…a298 | For | 1.1 | 0.00% | — | 3y ago |
| 700x70df…1889 | For | 1 | 0.00% | — | 3y ago |
| 570x5762…a752 | For | 1 | 0.00% | — | 3y ago |
| A30xa378…e811 | For | 0.2 | 0.00% | — | 3y ago |
| 700x709e…e8f7 | For | 0.2 | 0.00% | — | 3y ago |
| 180x18d6…13f9 | For | 0.2 | 0.00% | — | 3y ago |
| FB0xfbcc…594a | For | 0.1 | 0.00% | — | 3y ago |
| 150x1572…85fa | For | 0 | 0.00% | — | 3y ago |
| 0C0x0c66…fda7 | For | 0 | 0.00% | — | 3y ago |
| 940x945f…c726 | For | 0 | 0.00% | — | 3y ago |
| 8B0x8bf6…3083 | For | 0 | 0.00% | — | 3y ago |
| C70xc74f…2c5e | For | 0 | 0.00% | — | 3y ago |
| 160x16ae…96ab | For | 0 | 0.00% | — | 3y ago |
07Forum
No forum thread is confidently linked to this proposal.
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