GHO

GHO is a decentralized stablecoin issued by the Aave community that aims to stay pegged to the US dollar. It is minted mainly on Ethereum and can also be moved to networks such as Arbitrum and Base through Chainlink's cross-chain protocol. It is backed not by reserves in a company's bank account but by crypto collateral that users deposit into Aave.

A user mints GHO when borrowing against assets posted as collateral on Aave; when the debt is repaid, the corresponding GHO is burned. The entities that can mint GHO are called facilitators, and Aave DAO sets the minting cap for each of them. The borrowing rate is also set by DAO decision, and the interest income flows to the DAO treasury. To support the peg, the GHO Stability Module offers swaps between GHO and stablecoins such as USDC and USDT; users who deposit GHO into savings mechanisms can earn a yield.

The dollar peg of GHO can be affected by sudden drops in the value of collateral assets, the depth of liquidity pools, DAO decisions on the borrowing rate and smart contract risks. The GHO page on Lzzo.com uses DefiLlama's US dollar reference price and tracks this source's historical values in the chart.