Facilitators

The GHO token has a simple yet flexible design. See for yourself by viewing the contract source.

The core mechanism of the GHO contract is facilitators. A facilitator is an address with the ability to mint GHO up to a specified threshold. Facilitators can only be approved by Aave Governance through on-chain proposal voting.

The initial proposal for GHO launched two faciltiators: Aave Protocol and Flashmint. The Aave Protocol facilitator operates similarly to borrowing a standard Aave reserve token: the borrow function is called but in the case of GHO, liquidity is minted instead of being allocated from token suppliers.

The flashmint facilitator operates simiarly to the flashloan functionality of the Aave Protocol, enabling GHO to be minted and burned within a single transaction.

The generic nature of the GHO facilitator model creates a large design space for potential facilitators, some ideas are listed below.

Ideas

• Existing DeFi protocols as potential facilitator
• New facilitator protocol to acheive strategic goal for Aave DAO: peg stability, treasury management, etc.
• Interest rate or bonding curve mechanisms (potential upgrade to Aave Protocol facilitator or entirely new facilitator)
• Systems for verifying off-chain collateral

Resources

• Flashmint Facilitator
• Aave Protocol Facilitator
• GHO Facilitator Governance Framework
• Aave Address Book - solidity & npm registry

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