[ARFC] GHO - Increase Borrow Rate

Over the past week, the GHO peg has been gradually declining, while the supply has been increasing. Users have been minting GHO and subsequently exchanging it for other assets.

Incremental interest rate hikes have not had the desired effect, evident by GHO price continuing to trade lower. The GHO borrowing rate remains significantly lower compared to other stablecoins.

This publication suggests aligning the GHO borrowing rate with the proposed sDAI rate, 4.72%. The aim is to reduce the borrowing discount of GHO relative to other stablecoins before returning to periodic 50bps increases.

The chart below shows the general GHO price downwards trend.