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The GHO stablecoin community is considering various strategies to maintain its peg to the US dollar, such as staking incentives and a GHO Savings Rate, amidst mixed reactions and concerns about long-term viability and governance transparency. A Snapshot vote is forthcoming to determine the adoption of these strategies, with ongoing discussions about increasing the borrowing rate and other measures to stabilize the peg.
The discussion revolves around the stability and peg of the GHO stablecoin. Since its launch, GHO has struggled to maintain its peg to the US dollar, often trading below $1. The community is exploring various strategies to stimulate demand for GHO and maintain its peg. Proposals include increasing GHO borrow rates, enabling wGHO as collateral, creating a GHO Stability Module (GSM), and implementing a GHO Savings Rate (GSR) funded by liquidation protocol fees. The community is also considering the use of GHO staking to lower borrow rates on other assets and the introduction of a penalty system for staking beyond a discount cap.
The community has shown a mix of support and concern for the proposed strategies. Some members, like Stableghost2 and Kene_StableLab3, are in favor of the proposals, particularly the utility of staking GHO to lower borrow rates and earn through liquidation protocol fees. Others, such as 0xTogbe4 and ApuMallku5, suggest making GHO a collateral at a fixed price to address the peg issue. Josojo6 emphasizes the importance of a stable peg over competitive borrowing rates and proposes increasing the GHO borrowing rate to match the sDAI saving rate. There are also concerns about the long-term viability of staking GHO for lower borrow rates and the need for more transparent communication and strategic planning within the community.
Posted a month ago
Last reply 12 days ago
Summary updated 10 days ago
Last updated 04/12 00:17