# Update GNO Risk Parameters on Aave V3 Gnosis Pool
AI summary
This proposal aims to change the risk parameters for GNO tokens on the Aave V3 Gnosis Pool. Currently, GNO can only be supplied as collateral but cannot be borrowed. The proposed changes will enable GNO to be borrowed, making it a more versatile asset within the Aave ecosystem. This is intended to boost the utility of GNO and support the decentralization of the Gnosischain.
If this proposal passes, GNO holders will be able to borrow GNO, which could increase its demand and create new opportunities for passive income and staking. The Aave protocol benefits from increased asset utility and potential for higher transaction volume. There are no clear losers, but enabling borrowing always introduces new risks to the protocol, which are mitigated by the defined risk parameters.
Voting results
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Update GNO Risk Parameters on Aave V3 Gnosis Pool
title: "Update GNO Risk Parameters on Aave V3 Gnosis Pool" author: "Aave Chan Initiative" discussions: "https://governance.aave.com/t/arfc-update-gno-risk-parameters-on-aave-v3-gnosis-pool/15613"
Simple Summary
This AIP proposes to update GNO risk parameters on the Aave V3 Gnosis Pool to enable borrowing, fostering Gnosischain decentralization and use-cases for passive income and staking.
Motivation
The goal is to enhance GNO utility by allowing it to be a borrowable asset, thereby supporting Gnosischain’s decentralization…