This is an archive of our post on Aave governance forum. Read the full thread here.

LlamaRisk believes onboarding osGNO to Aave V3 on Gnosis to be premature.

GNO itself is still in Isolation mode, the removal from which has traditionally predated any onboarding of derivative liquid staked tokens. This has been the case with slisBNB and artMetis, who were onboarded after respective underlying assets.

In addition, osGNO is a new asset with a sub $2M market capitalization. GnosisScan reports 20 holders with more than one osGNO and over 80% of the supply is held in just one DEX pool. Indeed, the asset is so new Stakewise (the developer of osGNO) documentation itself omits to mention the asset.

Considering this and the previous point, we suggest revisiting osGNO’s onboarding later.

Nevertheless, in the spirit of preparedness, we are working on a full collateral suitability report for GNO and a provisional overview of osGNO. This should assist DAO efforts to remove GNO from isolation should a proposal on this topic come forward. There is evidence of good demand for GNO on Aave, so removing it from Isolation Mode may establish a clearer path for our support for osGNO’s onboarding and make good business sense.