Aave Labs announced plans to stabilize GHO using BUIDL shares from Belad.

2024-08-26 22:08:18

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Golden Finance reports that Aave Labs has proposed an update to its GHO Stability Module (GSM), which involves using BlackRock’s tokenization fund BUIDL to help maintain the USD peg of its stablecoin. According to the proposal, the new GSM will allow Aave to exchange BUIDL shares with user-provided USD Coin (USDC) to mint their ecosystem-backed stablecoin GHO. These tokens will be stored in a smart contract until users exchange their GHO for USDC. The stock value of BUIDL remains stable at $1 per Token, and pays daily returns to investors every month. The fund allocates its assets to cash, US Treasury bonds, and repurchase protocol. According to data from RWA.xyz, BUIDL’s Assets Under Management (AUM) exceeds $502 million.

AAVE2.38%

USDC0.01%

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