Aave

title: GHO Facilitator Onboarding Process and Application author: @oneski22, @khan description: A process for prospective GHO Facilitators to apply to be onboarded into the GHO deployment operated by the Aave DAO created: 2023-03-24

Abstract

This proposal aims to enact a new governance process by which interested parties may apply to the Aave DAO to have addresses be onboarded as GHO Facilitators. The authors propose a process by which interested parties publish an application to the Aave Forum (governance.aave.com 1), after a period of discussion and comment, an offchain vote is taken using Snapshot. Should that temperature check vote be successful, an on-chain vote targeting the Aave DAO Short Executor will formally add the address and its initial cap to the GHO system as a facilitator. This post outlines the process in detail, an addition includes 2 sample applications for each of the facilitators Aave Companies has released publicly, Aave V3 & Flash Minter.

Motivation

The GHO Stablecoin Protocol will be governed by the Aave DAO, specifically the Aave DAO Short Executor. There are 3 new processes that the Aave DAO will need to implement:

• a process for facilitator onboarding
• a process for adjustment of a facilitator limit
• a process for facilitator offboarding.

This document only intends to address the first of these processes.

Implementation

The Facilitator onboarding process will begin with a post on the Aave Governance Forum (governance.aave.com 1) conforming to the template below. Next, a 7 day discussion period will commence for the community to ask questions. After the discussion period a snapshot temperature check can be posted on Snapshot. The standard snapshot process with an informal quorum of 320,000 votes is suggested to ensure sufficient community input is received and to keep consistency with existing governance processes. Should the temperature check be successful, another discussion period of 7 days will commence for the community to further refine the proposal. The authors hope that during this second period technical and risk contributors especially provide feedback on the proposed facilitator design, terms of the credit line and the initial GHO limit being requested. Following this second discussion period, an on-chain proposal targeting the Aave DAO Short Executor can then be posted via the Aave DAO Governance contracts to formally on-board the facilitator with its initial GHO limit.

Specification

FOR - Adopt this process for onboarding GHO Facilitators

NAE - Do not adopt this process for onboarding GHO Facilitators

ABSTAIN - Abstain

Copyright

Copyright and related rights waived via CC0.

Facilitator Application Template

Background

• Title of Facilitator
• High Level Description of Mechanism / Request
• Author / Link to License
• Link to whitepaper (if applicable)
• How Facilitator Furthers GHO
• Organization / DAO responsible for operation of the Facilitator (if applicable)
• History, Details, Background of the operator of the Facilitator (if applicable)

Credit Line Details

• Requested Facilitator Cap
• Cap Increase Roadmap (if applicable)
• Use of Funds
• Revenue Streams
• Revenue Split / Interest Terms
• Collateral Posted
• Other Commercial Details/Considerations

Mechanism & Risk Details

• Detailed Description of the Facilitator
• How Facilitator is backing GHO
• If RWA - description of legal structure etc
• Detail any / all risks (Oracle risk, Third-party Dependencies, Contract risk, Cross-chain, Bridging, Regulatory, etc) as well as any prevention/mitigation methods

Governance Controls

• List of controls given to Aave DAO
• Controls given not to Aave DAO
• Alternative controls / roles that may be present but not set (optimistic governance? Risk Admin? SubDAO etc) + description on who can set these roles
• Upgradability controls

Facilitator Code and Documentation

• Code Repository
• Audit Report (optional but strongly recommended)
• Documentation
• Non-technical explainer
• License Details