Aave Gho Gsm protocol
Overview
Aave DAO’s GHO Stability Module (GSM) comprises smart contracts that support the dollar peg of its native stablecoin, GHO, which is overcollateralised. Each GSM contains a reserve stablecoin authorised by governance—currently USDC and USDT are deployed—enabling users to exchange that reserve asset for GHO or vice versa at a fixed rate, plus a nominal fee, within governance-set limits. This mechanism provides arbitrageurs with a clear path to mint GHO when its market price exceeds $1 and to redeem it when the price falls below, narrowing the trading range around parity. Aave governance retains control over parameters like swap fees, exposure thresholds and the selection of reserve assets.
Relations
No connections recorded for this entity in The Counterparty knowledge graph yet.
Frequently asked questions
What is Aave Gho Gsm?
Aave Gho Gsm is a stablecoin tracked in The Counterparty knowledge graph.
What type of entity is Aave Gho Gsm?
Aave Gho Gsm is classified as a stablecoin (protocol) in The Counterparty knowledge graph.
Sources
Facts in this record were checked against the following. Where a claim is not covered here, the record states only what the graph holds.