GHO

Conversions through the GHO Stability Module carry a percentage fee that goes to the Aave DAO treasury.

“Each GSM instance has a FeeStrategy contract that determines a percentage fee for buy and sell conversions that is allocated to the Aave DAO treasury.”

GHO relies on over-collateralisation in the Aave Protocol and market mechanisms to hold its value.

“Its stability is maintained through market efficiencies and over-collateralisation mechanisms inherent in the Aave Protocol.”

Only facilitator contracts approved by Aave Governance can mint and burn GHO, each within a governance-set cap.

“Facilitators are contracts approved by Aave Governance with the ability to mint and burn GHO, each subject to a governance-defined mint cap.”

If GHO trades outside $0.995–$1.005 on a 30-day average, the GHO Stewards may adjust the borrow rate by up to 500 bps per two days, to at most 25% APR.

“If the trailing 30-day average price of GHO stays outside a $0.995 - $1.005 price range, the GHO Stewards are able to adjust the Borrow Rate no more than 500bps per 2-day period, up to a maximum 25% APR.”