Stop tempering with GHO borrowing rate and allow it to be more loose as peg

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The AAVE community is actively discussing and addressing issues related to the GHO stablecoin's deceptive UI, which led to significant financial losses for user Stickletti due to an unexpected increase in borrowing rate. The situation highlights both the community's commitment to problem-solving and the need for system improvements to prevent similar incidents.

What is this about?

This discussion revolves around the AAVE ecosystem and the GHO stablecoin. Stickletti had a negative experience with the GHO stablecoin, borrowing a large amount due to its advertised fixed borrowing rate of ~1%. However, the rate increased to 3% over time, leading to significant financial losses. Stickletti criticized the deceptive UI and called for changes to prevent similar issues in the future1.

How is the community reacting?

The community is reacting with concern to Stickletti's experience. ApuMallku agreed with Stickletti's concerns and suggested that these issues be discussed in an existing thread about increasing the GHO Borrow Rate2. The thread was then closed by EzR3aL, who directed the discussion to the thread mentioned by ApuMallku3.

Why this is positive?

The positive aspect of this situation is the community's responsiveness to the issue. The community members are actively engaging in the discussion, suggesting solutions, and redirecting the conversation to relevant threads. This shows a proactive approach to problem-solving and a commitment to improving the AAVE ecosystem.

Why this is negative?

The negative aspect is the deceptive UI of the GHO stablecoin, which led to Stickletti's financial losses. The borrowing rate was not fixed as advertised, which can lead to mistrust in the system. This issue needs to be addressed to prevent similar incidents in the future.

Posted a month ago

Last reply a month ago

Summary updated a month ago

Last updated 06/12 00:43