It can be easy to become overwhelmed by the sheer amount of information in the space – especially regarding governance. As such, I decided to help cut some signal from the noise and present two governance threads I recommend people follow: Aave’s GHO launch parameters and a Compound thread about a new protocol called Aera Finance.
Aave Companies, an Aave development group, proposed launch parameters for GHO in their forum this morning. As one of the most anticipated stablecoins to launch and a potentially huge catalyst for Aave, the launch parameters are an important decision. The launch parameters could determine if the stablecoin takes off or stalls on launch. The initial parameters call for launching with $15m GHO but scaling to $500M GHO within one year. Aave Companies also recommends an initial 2% – 2.5% borrow rate. For those with stkAAVE, Aave will reduce the minting fees by 25%.
There is much more to the discussion regarding GHO’s launch parameters. We recommend taking a more in-depth look. Thankfully, Aave Companies also posted a much more in-depth GHO breakdown which readers can find here.
Gaunlet Shares Aera Finance with Compound
Gaunlet has recently launched Aera, an autonomous treasury management protocol. The team asked Compound if they wanted to use Aera with some of their treasury funds. Aera creates bespoke vaults for DAO treasuries with dedicated guardians (managers) who work to meet vault objectives. Guardians receive scores for their choices, which forms a historical metric and affects the weight of their decisions for vaults versus other guardians. To align incentives, Guardians will have to post collateral to ensure their advice is in the best interests of the vaults. Aera’s design is a unique approach to treasury management, but we are still determining how it will work in practice. But we are always interested in new approaches and apps.
DAO treasuries are always tricky, primarily due to the challenges in aligning interests and coordinating individual actors in a decentralized system. Aera is a new project that aims to help solve these challenges, so we will watch how it performs in practice.