[AAVE] GHO Borrow Rate Update

Simple Summary

This AIP aims to decrease the GHO borrow rate from its current level to 6% 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:

1. A general decrease in borrowing demand for stablecoins across DeFi platforms.
2. Competing stablecoins offering more attractive rates, potentially drawing users away from GHO.
3. 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

BaseVariableBorrowRate of GHO is decreased to 6%

References

• Implementation: AaveV3Ethereum
• Tests: AaveV3Ethereum
• Discussion

Copyright

Copyright and related rights waived via CC0.

https://app.aave.com/governance/v3/proposal/?proposalId=151