The GHO stablecoin Aave hit $1 after trading below that peg for more than six months since its July 2023 launch. GHO’s integration with the Safety Module Aave appears to be a contributing factor to the price increase, pushing GHO’s price towards its $1 target.
Safety Modules are tokens locked for distribution in the event of a downturn, acting as a reserve. In particular, according to the platform’s proposal, users will receive income for holding and staking the token. The 10% yield attracted the necessary inflows and positive community reaction to increase network activity.
Users can now borrow GHO tokens with their USDC or USDT stablecoins, as well as redeem tokens through Aave at a 1:1 ratio. Since launch, the asset has dipped slightly below the $1 mark ahead of key integrations that brought more attention to the token. Last year, the stablecoin fell to $0.96 in November. Aave announced the launch of the GHO stablecoin on July 16, calling it overcollateralized and backed by multiple assets, including Ethereum (ETH) and Aave.
Image: The Cryptonomist
