Building a GHO Basic Model for Aave Using No-Code Simulation Tools

This article introduces a funded proposal aimed at building a foundational model for a top DeFi protocol, GHO. The model will utilize no-code, visual modeling simulation tools to bring complex simulation techniques from experts to the community and the public, allowing more ordinary people to participate in construction and innovation.

The main value of the proposal is:

1. Promote protocol design innovation through rapid trial and error and efficient iteration.
2. Identify economic security risks in advance through off-chain simulation, improve design quality and reduce trial and error costs.
3. As an interactive educational tool, enhance users' understanding and trust in the GHO system.
4. Enhance the capacity and responsiveness of community participation in governance

Proposal Details

Background Overview

As a key leader in the DeFi space, the protocol has always been at the forefront of the industry. GHO, as its native stablecoin, is a key strategy for driving the ecosystem towards large-scale adoption. However, as a newer stablecoin, GHO still has significant growth potential, which requires the introduction of a series of innovative solutions. It is crucial for the current ecosystem to maximize innovation while quickly and comprehensively optimizing program design, identifying risks, and efficiently collaborating with the community to make scientific decisions.

Project Introduction

This proposal will utilize advanced no-code, visual modeling simulation tools to build a high-fidelity GHO off-chain foundational model that is readable, usable, and verifiable by the public, allowing simulation to move from a select few to the community and the masses.

We will build key "building blocks" such as Users, Facilitators, GHO, Market, and Governance, complete the model construction through simple operations, and conduct strict validity checks to ensure high-fidelity restoration of the GHO protocol ecosystem.

The future roles of this model include: providing insights, optimizing designs, anticipating risks, and supporting decision-making, among others. Importantly, the model is highly transparent and supports sharing, and is expected to become an educational, governance, and promotional auxiliary tool for the GHO protocol.

project value

Specifically, this solution will bring the following value:

1. Rapid trial and error, bold innovation, efficient iterative protocol design
2. Conduct a comprehensive screening of economic security risk points and efficiently reduce the simulated experimental space.
3. As an interactive dynamic education and promotion tool
4. Enhance the degree of decentralization and response speed of governance, and strengthen community innovation.

Project Innovation Points

1. It can not only reduce risks but also inspire more innovation.
2. Display mechanisms and risks transparently in real-time
3. Designed for the community, easy for everyone to use
4. Unprecedented governance, education, and promotion tools

Project Objectives

Short-term goal:

• Efficiently complete the construction of the GHO basic model, laying a solid foundation for subsequent design optimization, risk screening, and other work for the community.
• Try to provide new ideas for education, governance, and promotion.

Long-term goal:

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

Research Feasibility

The Feasibility of Protocol Simulation

Although all models are based on assumptions, this does not affect the validity of the models. Successful cases from the relevant risk management team indicate that protocol simulation is feasible and can provide recommendations for the sustainable development of the ecosystem.

Regarding the feasibility of the team using tools to complete protocol simulations

Team members possess interdisciplinary expertise and have a solid theoretical foundation and rich experience in areas such as complex system modeling and protocol simulation. The team has successfully built a Terra/Luna protocol model using this tool, replicating its collapse mechanism.

Research Route

The technical roadmap includes steps such as research on the GHO mechanism, model development and validation, and community education and promotion. Preliminary research work has been initiated, and key modules and interaction processes have been initially identified.

Conclusion

We hope to safeguard ecological security by introducing an off-chain GHO initial prototype, in conjunction with the existing risk management framework, and to encourage broader community participation and innovation. We believe this project will enhance public awareness and trust in the system, strengthen community governance and innovation capabilities, and help DeFi reach more users.