[ARFC] Deploy USDC and USDT GSM On Arbitrum
title: [ARFC] Deploy USDC and USDT GSM On Arbitrum author: @karpatkey_TokenLogic created: 2024-06-30
Summary
This publication proposes deploying a USDC and USDT GHO Stability Module (GSM) on the Arbitrum network. The two GSMs are to be maintained by the GHO Stewards.
Motivation
The GSM provides stability to the GHO peg by enabling assets to be exchanged within a defined price band. Deploying a GSM on the Arbitrum network enables swaps to be filled without unnecessarily creating an arbitrage opportunity between networks.
With the LTIPP ARB grant coinciding with GHO being launched on Arbtirum, the Aave DAO can stimulate demand for GHO whilst also restricting the Bridge Facilitator mint cap to encourage users to mint GHO via the GSMs. User will also be able to swap USDC and USDT for GHO via aggregators that have integrated the GSM. This will lead to USDC and USDT being deposited into the GSM.
With a healthy balance of USDC and USDT in each respective GSM, the Bridge Facilitator cap can be raised more aggressively and a GHO Bucket Cap with Facilitor role can be introduced to Aave v3 on Arbitrum.
Specification
The below outline the proposed changes to be included in the governance proposal submission.
Ethereum
Arbitrum Focused Facilitator
| Parameter | Value |
|---|---|
| Mint Cap | +2M Units |
CCIP Bucket Capacity Adjustment
| Parameter | Value |
|---|---|
| Mint Cap | +2M Units |
Arbitrum
CCIP Facilitator Capacity Adjustment
| Parameter | Value |
|---|---|
| Mint Cap | +2M Units |
GSM Configuration
The below provides the initial configuration of the USDC and USDT GSMs that will be updated by the GHO Stewards post launch.
| Parameter | Value |
|---|---|
| Freeze Lower Bound | $0.990 |
| Freeze Upper Bound | $1.010 |
| Unfreeze Lower Bound | $0.995 |
| Unfreeze Upper Bound | $1.005 |
| Mint GHO Fee | 0.05% |
| Burn GHO Fee | 0.20% |
| Supply Cap | 1.00M |
Any deviation from the above will be shared in the comments section below prior to the AIP being submited for vote.
Disclosure
TokenLogic and karpatkey receive no payment for this proposal. TokenLogic and karpatkey are both delegates within the Aave community.
Next Steps
- Gather feedback from the community.
- If consensus is reached on this ARFC, escalate this proposal to the Snapshot stage.
- If Snapshot outcome is YAE, the ALC will implement proposal.
Copyright
Copyright and related rights waived via CC0.
Off-Chain Vote
YAE
696.81K AAVE100%
NAY
0.13 AAVE0%
ABSTAIN
2.85 AAVE0%
Timeline
Jul 21, 2024Proposal created
Jul 22, 2024Proposal vote started
Jul 25, 2024Proposal vote ended
Mar 23, 2026Proposal updated