BUIDL Fund

Aave Labs proposed to integrate the GHO stable module with the BlackRock BUIDL Fund

ChainCatcher news, according to The Block, Aave Labs has proposed a temperature check proposal aimed at updating the GHO Stable Module (GSM) to integrate it with BlackRock's tokenized fund BUIDL. The main function of the GSM is to ensure that Aave's native stablecoin GHO maintains a 1:1 convertibility with other assets. The proposal suggests building a new instance of GSM that supports external integrations and related control mechanisms, specifically to support BlackRock's BUIDL. Currently, the proposal is in the temperature check phase and is receiving feedback from Aave governance members. If the community feedback is positive, AAVE token holders will vote on its implementation.BUIDL is a tokenized fund representing traditional assets such as cash and U.S. Treasury bonds. The proposal plans to achieve a 1:1 fixed exchange ratio between USDC and GHO, utilizing users' remaining USDC to mint equivalent dollar BUIDL shares. This could provide users with monthly BUIDL dividends, while the exchange fees will accumulate in the form of GHO stablecoin. Aave Labs stated that this implementation plan could enhance the capital efficiency of GSM while maintaining high standards of support, as USDC continues to back GHO. Furthermore, the integration of BUIDL with GSM could open new revenue streams for Aave DAO, expanding into the realm of physical assets and creating opportunities for future collaboration with leading global financial institution BlackRock.
ChainCatcher Building the Web3 world with innovators