cryptobanking

Has GHO been successful for AAVE? Currently $40M lent at 8.24%, which creates $3.3M/yr in revenue, but $13.8M of that is stkGHO in the safety module paying out $4.5M/yr.

Has anyone built a decentralized stablecoin that isn't just a big wealth transfer from gov token holders to borrowers?

Can you explain how it’s a wealth transfer? To me it looks like net income for the DAO, albeit limited due to lack of GHO use cases.

A CDP with no natural demand (other than borrow->sell) has two options to maintain peg, reduce supply to match demand or subsidize demand. 

GHOs below market rates and high emissions to create demand means AAVE holders are “paying” GHO borrowers to borrow & sell.

Ah so the standard situation of a project subsidizing users for the risks/costs of holding their token to bootstrap engagement/circulation in hopes it’ll start a flywheel.

You have to differentiate somehow when competing against incumbents with a product that’s quintessentially fungible. I guess instead of rewarding holders who do nothing you could try to reward *usage* (spenders/receivers of GHO, even if they turn around and burn it); though then you need Sybil resistance.