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

We agree with the rationale of @stani and @TokenLogic. Following the deployment of GHO on Base, @TokenLogic has proposed zero fees strategy to be implemented for the GSM. We believe that it is a suitable testing venue which will help to assess the implications and changes in the GSM’s usage patterns without taking excessive risk, therefore we have supported the proposal. We will monitor the dynamics following this implementation and keep the stakeholders updated.

In order to complete the transformation of GSMs and enable frictionless access to a risk-free yield source via GHO, more strategies similar to what TokenLogic has described with sGHO need to be implemented. Overnight repo solution for GHO would be a novel approach to position management and would act as a sustainable supply sink for GHO. We are eager to work together with @TokenLogic to assess risks and regulatory feasibility of different GHO strategies.