Aave

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.