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?

I guess another way to look at it would be that GHO is not intended to be a competitive or sustainable stablecoin, rather it is a perk for stkAAVE holders. Similar to OHM's cooler loans.

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.

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.

Well said 😆

It’s generally difficult to make a profit on a debt based stable when you incentivize AMM liquidity for the asset in question, since you need an exogenous asset as AMM pair which you aren’t earning any yield on

Maker is profitable, and has never incentivized AMM liquidity