Author: ACI

Date: 2024-10-07

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ARFC has been updated with latest Risk Parameters provided by Risk Service Providers. 2024-10-11

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Summary

This proposal aims to launch GHO on Base & set ACI as Emissions Manager for GHO and aGHO potential rewards and incentives.

Motivation

With a dedicated portion of GHO supply moving to the Arbitrum network and the generous grant from the Arbitrum DAO as part of the LTIPP, Aave DAO successfully bootstrapped GHO liquidity both within the Aave protocol and throughout the Arbitrum ecosystem.

Building on this success, it is now time to expand GHO to other networks. However, the lessons learned from the Arbitrum launch highlight the importance of coordinated efforts in several key areas:

• Implementing the necessary smart contracts and infrastructure to support GHO on the network
• Establishing appropriate risk parameters and collateral requirements specific to the Base ecosystem
• Integrating GHO with existing DeFi protocols and applications on Base to foster immediate utility
• Collaborating with the community to ensure a smooth launch and widespread adoption

These factors underscore the significant effort required from all service providers to create a successful launch. This ARFC vote seeks community approval to proceed with the launch of GHO on Base.

Specification

The ACI invites all service providers to provide input on their scopes within this proposal.

The proposed launch of GHO on Base will involve the following key components:

• BGD and Avara to implement and deploy the necessary smart contracts for GHO on the Base network, including cross chain bridge infrastructure and addition to Aave v3 Base.
• Risk service providers and finance service providers should collaborate on appropriate risk parameters and collateral requirements tailored to the Base ecosystem. From learnings on Arbitrum launch, ACI suggests a $25m starting bridge cap to allow for growth using the planned programs from the Base ecosystem.
• ALC will create a plan to bootstrap initial liquidity for GHO on Base, potentially including incentives or partnerships with existing Base protocols.
• ACI will coordinate with Base ecosystem teams to promote the GHO launch with appropriate support and incentives. The Base and Optimism ecosystem have provided a large commitment already. The DAO has previously voted for a continued incentives program and matching of the OP Retroactive Grant, that can be used to launch GHO on Base.
• ACI will be the Emission Manager for GHO and aGHO potential rewards and incentives.
• ACI multisig address: 0xac140648435d03f784879cd789130F22Ef588Fcd

The exact timeline and detailed technical specifications for each component will be determined by the service providers and presented in subsequent AIPs, pending the approval of this ARFC.

Parameter	Value
Asset	GHO
Market	Base
Isolation Mode	No
Borrowable	Yes
Collateral Enabled	No
Supply Cap	2,500,000
Borrow Cap	2,250,000
Debt Ceiling	-
LTV	-
LT	-
Liquidation Bonus	-
Liquidation Protocol Fee	-
Variable Base	0%
Variable Slope1	12%
Variable Slope2	65%
Uoptimal	90%
Reserve Factor	10%
Stable Borrowing	Disabled
Flashloanable	Yes
Siloed Borrowing	No
Borrowable in Isolation	No
E-Mode Category	N/A

Useful Links

ARFC: Merit Base incentives and SuperFest matching

Disclaimer

The ACI is not presenting this ARFC on behalf of any third party and is not compensated for creating this ARFC.

Next Steps

1. If consensus is reached on this [ARFC], escalate this proposal to the Snapshot stage.
2. If the ARFC snapshot outcome is YAE, service providers will proceed with the appropriate AIPs.

Copyright

Copyright and related rights waived via CC0.