title: [SGR] Create LP-sw-fGHO Gauge on Ethereum Network
author: @TokenLogic
created: 2025-01-06
Target Pair: PT-sw-fGHO / sw-fGHO TBA
IBT Contract Address: TBA
Twitter Link: x.com
Network: Ethereum
Simple Summary
This publication proposes creating a gauge to incentivise LP-sw-fGHO liquidity for fGHO.
Background
The Aave Protocol is a decentralized liquidity protocol deployed across many EVM compatible networks including but not limited to Ethereum, Base, Avalanche and Optimism. The Aave Protocol has over $34 Billion in TVL and $180M in annualised revenue.
GHO is a decentralized multi-collateral stable coin that is fully backed, transparent and native to the Aave Protocol. Some useful links relating to GHO are provided below;
Motivation
The Fluid fGHO token represents users’ GHO deposits on the Fluid platform. fGHO holders currently earn rewards from base lending rates and will soon benefit from additional FLUID emissions, as outlined in the Fluid Alignment Proposal. These emissions will be managed by the Aave Chan Initiative. The Merit Program has allocated a budget of $1.33M FLUID, dedicated entirely to incentivizing GHO pairs on Fluid, enhancing liquidity and user engagement.
The fGHO integration by Spectra enables PT Holders to gain access to fixed yield whilst YT holders receive yield from fGHO. Traders can swap between the PT and YT as a way of speculating on the net change in yield:
- YT’s yield is correlated to FLUID’s price and the native deposit rate
Benefits of this Integration for Spectra
First Mover Advantage
This pool will be the first in the fixed-yield market to enable speculation on FLUID’s price and lending rates. Backed by a substantial FLUID incentive budget, it is set to become one of the highest-yielding pools available, offering attractive opportunities for users.
TVL Growth
The integration of fGHO is poised to become one of the highest earning yield opportunities for Spectra users, likely drawing a significant influx of new deposits from those seeking long-term stablecoin yield.
Benefits of this Integration for Aave DAO
Potential veSPECTRA Bribe
To support the adoption of GHO, the Aave Liquidity Committee (ALC) can participate in the bribe market for veSPECTRA votes to enhance the yield to users with the intent of driving demand for GHO being deposited into Fluid via Spectra.
Community Poll
Voting options:
- YAE - Create Gauge for fGHO
- NAY - Do Nothing
- ABSTAIN
Disclaimer
TokenLogic is compensated by the Aave DAO for the creation of this proposal.
Copyright
Copyright and related rights waived via CC0.