[AAVE] Gho Borrow Rate Update September 2024
Simple Summary
This AIP aims to decrease the GHO borrow rate from its current level to 4.25% to enhance its competitiveness in the current market conditions.
Motivation
The DeFi landscape is constantly evolving, and stablecoin protocols must adapt to remain competitive. Recent market analysis indicates:
- A general decrease in borrowing demand for stablecoins across DeFi platforms.
- Competing stablecoins offering more attractive rates, potentially drawing users away from GHO.
- An opportunity to increase GHO's market share by offering more competitive rates.
By reducing the borrow rate, we aim to:
- Increase the attractiveness of GHO for borrowers
- Stimulate the growth of GHO's total supply
- Enhance GHO's position in the stablecoin market
Specification
The GHO borrow rate is to be revised as follows:
| Description | Current | Proposed | Reduction | | -- |
- | -- | | | Borrow Rate | 5.00% | 4.25% | 0.75% |
References
- Implementation: AaveV3Ethereum
- Tests: AaveV3Ethereum
- Discussion
Copyright
Copyright and related rights waived via CC0.
Off-Chain Vote
YAE
9 HVAXVC100%
NAY
0 HVAXVC0%
Timeline
Sep 17, 2024Proposal created
Sep 18, 2024Proposal vote started
Sep 20, 2024Proposal vote ended
Mar 26, 2026Proposal updated