title: Launch GHO Market on Arbitrum
author: @TokenLogic
created: 2025-02-21
Summary
This proposal seeks community support to deploy GHO on Fluid on Arbitrum, expanding its market reach and trading efficiency to include:
- Lending-as-Collateral;
- Smart Collateral;
- Smart Debt; and,
- DEX integration (when available).
When implemented this proposal is expected to enhance GHO’s capital efficiency by utilising all of Fluid’s features.
Motivation
GHO is a decentralized multi-collateral stablecoin that is fully backed, transparent, and native to the Aave Protocol, with approximately 190M of circulating supply.
With GHO now firmly established on Arbitrum and Fluid’s recent launch on the network, we aim to explore potential synergies between GHO and Fluid’s full suite of products. The recent Fluid Alignment proposal from Aave has set the stage for Aave to begin distributing FLUID rewards to GHO users on Ethereum mainnet.
Pending the imminent launch of these incentives, now is an ideal moment to integrate GHO on Arbitrum and ensure its inclusion in the upcoming rewards campaign, subject to FLUID being available multichain.
This expansion will strengthen GHO’s position within the Arbitrum ecosystem and create additional utility for users.
Specification
Boost Stablecoin Rewards
To enhance both GHO-USDC deep liquidity and lending/borrowing demand, we propose boosting rewards for the relevant vaults and LPs through targeted liquidity mining incentives with the “Fluid Alignment” budget.
This campaign will start on mainnet and will be brought to Arbitrum when FLUID has its multichain deployment.
Vault Specifications
GHO<>USDC/GHO-USDC Smart Collateral/Smart Debt Vault
- Collateral Factor (C.F.): 80%
- Liquidation Threshold (L.T.): 85%
- Max Liquidation Limit (L.M.L.): 90%
- Liquidation Penalty (L.P.): 2%
ETH/GHO Vault:
- Collateral Factor (C.F.): 85%
- Liquidation Threshold (L.T.): 90%
- Max Liquidation Limit (L.M.L.): 93%
- Liquidation Penalty (L.P.): 1%
wstETH/GHO Vault:
- Collateral Factor (C.F.): 78%
- Liquidation Threshold (L.T.): 85%
- Max Liquidation Limit (L.M.L.): 90%
- Liquidation Penalty (L.P.): 2.5%
weETH/GHO Vault:
- Collateral Factor (C.F.): 75%
- Liquidation Threshold (L.T.): 80%
- Max Liquidation Limit (L.M.L.): 85%
- Liquidation Penalty (L.P.): 6%
Disclosure
TokenLogic is a Service Provider and Delegate within the Aave community.
Copyright
Copyright and related rights waived via CC0.