The discussion revolves around a proposal by Oneski22 for a new governance process for onboarding GHO Facilitators to the Aave DAO-operated GHO deployment. The process involves a series of discussions, offchain and on-chain votes, and a detailed application process. The proposal is part of a larger initiative to implement three new processes: facilitator onboarding, adjustment of a facilitator limit, and facilitator offboarding. However, this proposal only addresses the first process.

The Aave DAO and its subcontractors will operate and manage the Aave V3 Ethereum Market Facilitator, which is the second largest credit issuer in DeFi. The proposed facilitator will enable the addition of GHO to the Aave V3 Ethereum Market as a borrow only currency. The revenue streams will be from interest earned from borrow positions and liquidation bonuses accrued from poorly managed positions. All revenue will go to the Aave DAO Treasury. Risks include potential default due to large and rapid price movements, governance risks, smart contract failure, and oracle issues.

The Aave V3 Ethereum Market relies on 3rd party liquidators to maintain a healthy collateralization ratio and an active governance to adjust risk parameters according to market conditions. The Aave DAO has full control over the Aave V3 Ethereum Market and the facilitator. The facilitator code is upgradable and controlled by the Aave DAO Short Executor. The code repository is hosted on GitHub and the documentation is available on the GHO Document Hub.

The facilitator application, Flash Minter, uses its credit line of GHO to allow users to flash mint arbitrary amounts of GHO for various atomic DeFi operations. The Aave DAO and its subcontractors will operate and manage the Facilitator. The requested facilitator cap is XX,000,000 GHO and the revenue generated from fees on flash mints will go to the Aave DAO Treasury. The Aave DAO will not post any collateral directly to back this credit line as flash mints must be returned in the same transaction to be valid. The only risk identified is the possibility of smart contract failure. The Aave DAO retains full control over the facilitator and can change the flash mint fee through the Aave DAO Short Executor.

The code repository for the project is hosted on GitHub under the name 'aave/gho-core'. An audit report is available in the same repository under 'gho-core/audits'. The developer documentation and a non-technical explainer are available on the GHO Document Hub. The project is licensed under the MIT License. A snapshot is scheduled to start on May 5th.