Building a Community-Friendly GHO Simulation Model for Aave

This article introduces a funded proposal aimed at utilizing the no-code visual modeling tool HoloBit to build a high-fidelity foundational model for the GHO stablecoin of Aave. This model promotes complex simulation techniques from experts to the community, allowing more ordinary people to participate in construction and innovation.

Proposal Details

Background Overview

Aave, as a key leader in the DeFi space, considers the launch of its native stablecoin GHO a critical strategy for driving the further development of its ecosystem. However, as a relatively late entrant, GHO still has significant growth potential and requires the introduction of a series of innovative solutions. Maximizing innovation while quickly and comprehensively optimizing design and conducting risk assessments, along with efficiently collaborating with the community to make decisions, is crucial for the current Aave and GHO.

Project Introduction

This project will utilize the HoloBit tool to build a high-fidelity off-chain foundational model of GHO that is accessible to the public. By constructing key modules such as users, facilitators, GHO, markets, and governance, a Lego-like model will be established. This model will be used to provide insights, optimize designs, foresee risks, and support decision-making.

The high transparency and ease of use of the model allow non-technical users to participate in innovation, and it is expected to become an educational, governance, and promotional tool for the GHO protocol. It can also complement and enhance the existing protocol design and risk management framework.

Project Value

1. Rapid trial and error, efficient iterative protocol design
2. Comprehensive Screening of Economic Security Risk Points
3. As an interactive dynamic educational and promotional tool
4. Enhance the level of decentralization and responsiveness of governance

Project Innovations

• Not only reduces risks but also inspires more innovation
• Display mechanisms and risks in real-time transparency
• Designed for the community, everyone can use it easily.
• Unprecedented governance, education, and promotion tools

Project Goal

Short-term goal:

• Complete the GHO basic model construction
• Develop an educational plan to ensure the public can understand and use the model.

Long-term goal:

• Help build a more robust GHO ecosystem
• Exploring the application of off-chain models in the Aave ecosystem

Research Feasibility

Although all models are based on assumptions, it does not affect their practicality in solving specific problems. Successful cases show that flexibly adjusting assumptions according to simulation objectives can ensure the effectiveness of the model.

The research team possesses interdisciplinary expertise and extensive project experience. The HoloBit tool is user-friendly and powerful, suitable for building high-fidelity off-chain GHO models. The team has successfully utilized HoloBit to construct the Terra/Luna model and replicate its collapse mechanism.

Research Route

The technical route includes steps such as research on the GHO mechanism, modeling and simulation, and model validation and optimization.

Current progress: Some preliminary research has been completed, and the key sectors covered by the model and the initial interaction process have been identified.

Conclusion

This project aims to introduce an off-chain GHO initial prototype, in conjunction with the existing risk management framework to safeguard ecological security, while also serving as a transparent and flexible experimental platform to incentivize community participation and innovation. We believe this will effectively enhance public awareness and acceptance of Aave and GHO, strengthen community governance and innovation capabilities, and promote DeFi to reach more users.