GHO Stablecoin

GHO is a decentralized multi-collateral stablecoin that is fully backed, transparent and native to the Aave Protocol.

How to mint GHO?

Borrowers and suppliers can mint GHO using assets they have supplied into V3 as collateral on Ethereum markets, while continuing to earn interests on their underlying assets.

How to borrow GHO?

The GHO pool will function differently from existing assets but to borrow it will work similarly as other available assets on the different markets in the protocol.

  1. Supply Collateral

  2. Borrow GHO

  3. Repay GHO and Accrued Interest (real-time)

  4. Repaid interest will be redirected to the DAO, rather than an asset supplier, contributing to the DAO treasury

Which assets can be used as collateral to borrow GHO?

Assets that are available in the Aave Protocol can be used to back GHO. Initially, the Ethereum V3 pool will be the first facilitator to launch because of V3’s extensive risk-mitigation features, including e-mode, isolation mode, and supply caps.

Who manages the GHO supply?

The Aave DAO will manage the supply of GHO, the interest and determine risk parameters.

How does GHO benefit the Aave Treasury?

By the repaid interests being redirected to the DAO, rather than the asset suppliers, these repaid interests contribute to the DAO treasury.

How is GHO different from the other assets listed on the Aave markets?

Unlike many stablecoins, the oracle price for GHO will be fixed. Decentralized stablecoins such as GHO are transparent and cannot be changed. Interest rates are defined by the Aave DAO and repaid interest is redirected to the DAO instead of the asset suppliers. Discounts are available to borrowers staking AAVE in the Safety Module.

Can you explain more about the discount model for GHO?

Users that have staked AAVE tokens in the Safety Module (stkAave) are eligible for a discount on GHO.

For each stkAave there will be a discount on the borrowing rate for 100 GHO. The discount model is interchangeable and can be redesigned and replaced if needed by The Aave DAO.

Is only stkAAVE used for discount or is aBPT eligible? If not, why?

Currently only stkAAVE.

Can GHO be flashloaned?

GHO can be flashloaned, but is implemented differently than flashloans are today.

Learn more about GHO

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