Strategic AAVE-GHO borrow-payback lock?

General Community
1

Just today I wanted to pay back some GHO on AAVE and I noticed that I cannot use AAVE anymore.
Is the community aware that we are in a state of locked use in AAVE?
Or does nobody have this usecase?

My usecase is:

  • Stash wstETH on AAVE (my Bank replacement) save in an non-inflationary asset where I fully support the ecosystem
  • Borrow cash, when needed (Bank replacement part 2 → no hassle with applications for credit and proving all my income etc. to then be turned down because I am self-employed with “unreliable” income) this permissionlessness is exactly what crypto is here for :wink:
  • Regularily pay back the borrowed cash and increase the wstETH stash, along the way to staying overall in a positive balance

Now I noticed:

  • I cannot convert anything to GHO, interest rate on GHO is now about 4%, so I prefer to pay back that one first
  • There is a nice Balancer 3 Pool USDC.e x GHO but has TVL of about 280$^^
  • I cannot add liquidity without GHO - as flexible mode is only available from TVL > 50k$
  • I cannot borrow more GHO to add balanced liquidity to the Pool

This is a strategic locked situation - how can this happen? Did nobody pay attention who had some responsibility/control in this situation?
Was somebody “in power” pissed at the lack of appreciation of the community to his “sacrifice” stacking the liquidity there xD ? Then Withdrawing it without noticing that now nobody can add liquidty?

Why is AAVE locked for borrowing? Is only wstETH locked as collateral, or what is the situation there?
Isn’t anybody else in this situation?

This is a bit odd - imagine if I was in a desperate situation and cannot do these things - somehow we should have a way how it is seen and cared for by the people responsible. I am just a small person who can just tell if I am suddenly cut off the one greatest usecase of the Gnosis Chain, thanks to Monerium + AAVE + some Defi Liquidity.

Cheers and with best regards!

PS: Is there a better place to talk about these Strategical capability/liquidity issues?

2

suppose you are talking about GHO only on Gnosischain? I don’t know which chain might be the best place for exchange to GHO but there is liquidity e.g. on ethereum at uniswap (see below) and GHO can be bridged on the Aave dashboard.

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1 Like
3

Hi @refri thanks for your reply!

Really I can do that?
I thought GHO that I can borrow from AAVE on the Gnosischain is not the same as the GHO I can bridge from Ethereum.

I can remember I actually tried that once long time ago - but maybe something has changed in the meantime^^ or my memory is playing tricks on me xD
Because that would’ve been actually great for my thought usecases…

4

Ahhhh I just got it, one can use AAVE to bridge the GHO - even better! how could I not notice that xD
All great.

Then the lock is not absolute. :slight_smile:

Still sad that appearently the liquidity on the GnosisChain is leaving - I also read that is the reason why AAVE DAO set the LTV of wstETH on the GnosisChain to 0%.

1 Like
5

seeing eez is coming, there is not much need to keep liquidity on gnosischain, at least for me. Only what I need for my gnosispay card, but not sure how long I will use it when zeal will be gone :person_shrugging: