Aave Labs has proposed an update to its GHO Stable Module (GSM) that involves using shares of BlackRock’s tokenized fund BUIDL to help maintain the USD peg of its GHO stablecoin.
According to the proposal, the new GSM would allow Aave to redeem BUIDL shares with user-provided USD Coin (USDC) to mint GHO. These tokens would 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 on a monthly basis. The fund divides its assets between cash, U.S. Treasury bills, and repurchase agreements. According to RWA.xyz, BUIDL AUM exceeds $502 million. (CryptoSlate)