Aave Labs plans to use BlackRock's BUIDL shares to help maintain the dollar peg of the stablecoin GHO

2024-08-27 08:29:26

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ChainCatcher news, according to Cryptoslate, Aave Labs has proposed an update to its GHO Stable Module (GSM), which involves using shares of the BlackRock tokenized fund BUIDL to help maintain the dollar peg of its GHO stablecoin.

According to the proposal, the new GSM will allow Aave to exchange user-provided USD Coin (USDC) for BUIDL shares to mint its ecosystem's native dollar-backed stablecoin GHO. These tokens will be held in a smart contract until users redeem their GHO for USDC. The value of BUIDL shares is stabilized at $1 per token, with daily returns paid to investors monthly. The fund allocates its assets to cash, U.S. Treasury bills, and repurchase agreements. According to data from RWA.xyz, BUIDL's assets under management (AUM) exceed $502 million.

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Aave Labs BUIDL GHO

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