ARC: Add GNO to Aave V2

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The proposal by Claberus to add GNO, the governance token of Gnosisdao, as collateral in the Aave v2 protocol received positive feedback, given GNO's liquidity and active community engagement. The onboarding of GNO would primarily benefit the GnosisDAO community and treasury, potentially increasing the Ethereum Reserve Factor.

The discussion primarily revolved around the proposal by Claberus to add GNO, the governance token of Gnosisdao, as collateral in the Aave v2 protocol1. Gnosisdao is a collective that uses GNO to guide decisions on the development of Gnosis products. The GNO token allows its holders to be validators and boost their rewards on the Gnosis Chain network, which provides stability and scalability1.

The community has shown increased interest in using GNO to earn additional yield without exposing it to significant risk. This is evident through the growth of GNO pools on various protocols, with an aggregated TVL of $108M+, making it a significantly liquid token1. A risk analysis based on Aave’s Asset Risk Framework 20 was conducted to quantify GNO’s risks. The overall risk of GNO was rated as B1.

Gnosis was founded in 2015 and has developed several products including Gnosis Auction, Zodiac, Conditional Tokens Framework, Gnosis Protocol V2, and Gnosis Safe. The total supply of GNO is 10M with most of the supply locked in a vesting contract for 8 years. No additional GNO can be minted1. Claberus suggested the following risk parameters for GNO onboarding: LTV: 70%, Liquidation Threshold: 75%, Liquidation Bonus: 10%, Reserve Factor: 20%4. The Gnosis community is active on Twitter, Discord, and Telegram with 2.6K members in the Telegram group and approximately 10K subscribers to the newsletter1.

In conclusion, the discussion supports the onboarding of GNO as a collateral on Aave v2 protocol. The GNO token's liquidity and the active community engagement make it a quality collateral for liquidations. The GnosisDAO community and treasury would be the main parties interested in depositing GNO and borrowing stablecoins, which would increase the Ethereum Reserve Factor1.

Posted 2 years ago

Last reply a year ago

Summary updated 2 months ago

Last updated 03/12 08:01