2025-03-26: This post was edited to reflect @LlamaRisk and @ChaosLabs parameters recommendations. When they differ, the most conservative one is selected.

[ARFC] Launch GHO on Gnosis Chain

author: kpk

date: 2025-03-13

Summary

This proposal aims to launch GHO on the Gnosis chain and designate ACI as the Emissions Manager for GHO rewards and incentives. Deploying GHO to Gnosis is one part of kpk’s (formerly karpatkey) mandate and a milestone towards sGHO (savings GHO) deployment. Gnosis Chain has low transaction fees, an engaged community, and a rapidly growing suite of DeFi applications focused on RWAs and innovative payment solutions like Gnosis Pay.

Motivation

The sGHO vault will provide a risk-minimized yield alternative that can be used as collateral for enhanced capital efficiency, debuting on Gnosis Chain. The first step of this deployment is introducing GHO to the Gnosis Chain, which is renowned for its cost-efficiency, active community, and innovative DeFi landscape, making it an ideal environment for GHO. As GHO Growth Service Provider, kpk has been entrusted with driving community engagement, forging strategic partnerships, and ensuring the successful liquidity bootstrapping of GHO.

This proposal leverages kpk’s expertise and the favorable market conditions on Gnosis to deploy GHO with risk parameters and smart contract implementations that are finely tuned to the unique characteristics of the Gnosis ecosystem. sGHO deployment, the enhancements proposed to the GC Instance and future incentives for GHO (subject to an upcoming proposal on both DAOs) will work together to position GHO as a strong player within Gnosis, enhancing the TVL and revenue for Aave on this chain.

Specification

The deployment of GHO on Gnosis will be executed through coordinated efforts among various service providers. The necessary smart contracts and supporting infrastructure will be designed and deployed to enable full GHO functionality on the Gnosis chain, including the implementation of any required cross-chain bridge infrastructure to ensure seamless integration within the Aave ecosystem. In parallel, risk and finance service providers will collaborate to establish risk parameters and collateral requirements specifically optimized for the Gnosis environment, incorporating insights gained from previous network launches.

Therefore, kpk is inviting all Service Providers to provide input on their scopes in this proposal. The proposed launch of GHO at Gnosis Chain will have the following key components:

• BGD and Avara (Aave Labs) to implement and deploy the necessary smart contracts for GHO on the Gnosis Chain network, including cross chain bridge infrastructure and addition to Aave v3 Gnosis Chain.
• Risk service providers and finance service providers should collaborate on appropriate risk parameters and collateral requirements tailored to the Gnosis Chain ecosystem.

Additionally, a strategic plan will be developed to bootstrap initial liquidity on Gnosis, including tailored incentives and partnerships with established protocols in the ecosystem. @ACI will serve as the Emissions Manager for GHO 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.

GHO parameters

Parameter	Value
Asset	GHO
Market	Gnosis
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	6.5%
Variable Slope2	50%
Optimal	90%
Reserve Factor	0%
Stable Borrowing	Disabled
Flashloanable	Yes
Siloed Borrowing	No
Borrowable in Isolation	No
E-Mode Category	N/A

Ethereum ↔ Gnosis GHO Facilitator

A facilitator will be deployed on Ethereum specifically to support Gnosis with this initial configuration:

Parameter	Value
Mint Cap	10M Units

CCIP Configuration

Bridge Facilitator parameters:

Parameter	Value
Bucket Capacity	+15M Units
Rate Limit Capacity	1,000,000 units
Refill Rate	200 GHO/sec

GHO Stewards

As with every GHO deployment, GHO Stewards are recommended to be deployed. Stewards would have the same parameter change capabilities as on other chains.

Disclaimer

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

Next Steps

If consensus is reached on this ARFC, the proposal will be escalated to the Snapshot stage. Upon a positive Snapshot outcome, service providers will proceed with the appropriate AIPs.

Copyright Copyright and related rights waived via CC0.