Plain English
GHO is Aave’s native decentralized USD stablecoin, launched in 2023. Minted by users with positions on Aave who borrow GHO against their collateral. AAVE stakers (safety module) receive a discount on GHO borrowing rates — creating a value-flywheel with the broader Aave ecosystem.
How it actually works
GHO is over-collateralized through Aave’s existing lending markets — borrow GHO instead of USDC against ETH/stETH/etc. Interest paid on GHO debt is set by Aave governance, not by utilization. All interest revenue flows directly to the Aave DAO treasury. Cross-chain deployment to L2s in progress.
What it means for you
GHO is one of the most credible new decentralized stablecoins. For HNW positioning, the staked-AAVE discount on GHO borrowing is a real reason to hold AAVE if you actively borrow. As a deposit asset, GHO is fine but less liquid than USDC/USDT on most non-Aave venues.
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Educational content only. Not investment, tax, or legal advice.