Aave

Summary

Aave Companies is proposing to the DAO the introduction of GHO, which was outlined in this initial proposal.

With community approval, GHO can be launched on the Aave Protocol, allowing users to mint GHO against their supplied collaterals.     GHO can be minted by users against a diversified set of crypto-assets. Borrowers of GHO will continue earning interest on the underlying supplied collateral, just as in all other borrow transactions on the Aave Protocol.

If approved, the introduction of GHO will provide benefits for the community via the AaveDAO by sending 100% of interest payments on GHO borrows to the DAO.

If approved and implemented through an AIP, GHO will be administered by Aave governance.

It will be up to the AaveDAO to decide whether they are willing to support Aave Companies for the costs and work associated with GHO.

Community Feedback

The community was very engaged with the GHO proposal, providing incredibly helpful and informative feedback.

Some of the most notable feedback includes (but is not limited to):

• Attention to potential pitfalls around DAO-set interest rates.

• The importance of supply caps.

• The value that a peg stability module could bring.

• The necessity for properly vetting potential facilitators.

This snapshot, if approved, will assign the Ethereum V2 Market on the Aave Protocol as the first facilitator for GHO, whilst also greenlighting the GHO proposal more generally, allowing for audits to take place in the context of broad community approval. It will be followed by a separate proposal that outlines a proposed strong starting state for GHO, which incorporates and builds upon the aforementioned feedback while helping to ensure that GHO is community driven from the get-gho.

Snapshot

This preliminary Snapshot vote serves to:

• Receive community approval for the pursuit of the GHO project.

• Whitelist the Aave V2 Ethereum Market as the first facilitator for GHO.

• Signal community approval to kick off discussions around starting parameters.

Our proposal for this starting state will be informed by community feedback regarding the initial proposal and will aim to provide a strong initiation point for the AaveDAO to oversee GHOs development and parameters moving forward.