Bluechip Ratings Director: Currently the best way to promote GHO stablecoin to maintain its peg is to promote arbitrage

Odaily Planet Daily News Aave DAO passed two snapshot proposals last week, partly to help GHO achieve its expected goal of being pegged to the US dollar. However, Vaidya Pallasena, rating director of stablecoin rating agency Bluechip, believes that both plans Doomed to fail. Pallasena said: “In its current form, GHO cannot maintain its peg,” and the peg problem can only be solved by allowing users to exchange GHO for their underlying collateral, allowing arbitrage to drive the price to $1. Facilitating arbitrage is the best approach, Pallasena believes, i.e. Aave should enable users to exchange GHO for collateral at $0.98 for $1, pushing the peg back to $1.