Aave’s GHO token is approaching its all-time high as its user base broadens, with a growing number of non-stkAAVE holders minting GHO since May.
This surge in adoption suggests that GHO is gaining traction beyond Aave’s core community, attracted by competitive borrowing rates and DeFi use cases.
Aave's GHO approaches ATH with broader userbase
The amount of GHO minted by non stkAAVE holders has been growing rapidly since May
This suggests GHO is being more adopted outside of the core Aave community with competitive rates for borrowing and using in DeFi pic.twitter.com/hmjhEQaDKQ
— IntoTheBlock (@intotheblock) August 27, 2024
Aave has recently proposed the GHO Stability Module, designed to maintain GHO’s stability during periods of high demand. The module will enable third-party integrations, including BlackRock’s BUIDL infrastructure, which holds over $500M in assets. By leveraging BUIDL’s USDC surplus, the module aims to generate additional yield opportunities while hedging against DeFi’s fluctuations.
The proposed module features 1:1 swaps between USDC and GHO, instant conversions, and swap fees accumulating in GHO to pay monthly dividends in BUIDL. If approved, this module would significantly impact the merging of DeFi and institutional liquidity, leading to a stronger GHO with better reserve management and higher capital efficiency.
$AAVE just posted their GHO Stability Module Proposal.
It will enable third-party integrations, specifically with BlackRock's BUIDL infrastructure.
This is very bullish. 🧵⬇️ pic.twitter.com/OQ6r3V6L09
— Emperor Osmo 🐂 🎯 (@Flowslikeosmo) August 26, 2024
A strengthened partnership with BlackRock would also open new avenues for growth and yield in the space. As GHO approaches its all-time high, it’s clear that Aave’s efforts to expand its user base and improve liquidity are paying off. With the GHO Stability Module, Aave is poised to further solidify its position in the DeFi landscape.
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.