Encyclopedia Stablecoins · Entry 311
What is GHO? Aave’s stablecoin
In this article
At a glance
Key facts
The token separates mint authority from a single market
A facilitator has a capacity and a current amount minted under that capacity. Governance controls who holds those roles and the allowed limits. This lets different approved mechanisms interact with the same token, but makes their rules important to understanding issuance.
A capacity of 10 million and a current level of 8 million would leave 2 million of headroom, using illustrative values. That headroom is a minting constraint, not a reserve balance or a promise that a user can borrow that amount.
Your loan remains separate from your token balance
Borrowing GHO creates a debt position governed by its collateral and interest rules. Buying GHO on a market simply acquires the token. Holding GHO is not the same as supplying collateral or earning the interest paid by borrowers.
Avoid relying on a historical advertised borrowing rate. Governance and market configuration can change the rate or capacity relevant to a specific position.
Inspect the actual stability mechanism
The GHO Stability Module framework supports conversions with approved external assets under configurable rules. This differs from assuming every token holder has an unrestricted right to receive one bank dollar directly.
Read the module’s supported asset, capacity, price strategy and controls. Governance, collateral, oracle and liquidity assumptions still matter even when a user-facing screen rounds the token price to $1.
Direct answers
Questions people ask
Does every GHO holder automatically earn Aave borrowing interest?
No. A token balance and participation in an interest-bearing product are different. The documented borrowing route sends interest to the DAO treasury; any holder reward or savings product has its own rules.
Inspect the evidence
The answer and key facts have stable claim links. These records retain the scope and qualification when reused.
GHO is a dollar-referenced stablecoin native to the Aave ecosystem. Its token uses approved facilitators that can mint and burn within governance-defined capacities. Borrowing against Aave collateral is one issuance route; stability modules add other mechanisms. GHO’s design target is a dollar peg, not a guaranteed secondary-market quote or a fixed return for holders.
Scope: Stablecoins · data through 2026-10-02. Verification: verified · 2026-10-02T19:26:58.461Z.
Link to this claimBorrowing: Aave collateral can support a GHO borrowing position.
Scope: Stablecoins · data through 2026-10-02. Verification: verified · 2026-10-02T19:26:58.461Z.
Link to this claimInterest: Interest from the documented Aave minting route is directed to the DAO treasury.
Scope: Stablecoins · data through 2026-10-02. Verification: verified · 2026-10-02T19:26:58.461Z.
Link to this claimRevision history
- — First publication after primary-source research and separate automated verification.
Source register
Sources and references
Retrieval dates and locators are recorded individually.- GHO protocol documentationAave
Governance-authorized mint/burn facilitators and mint caps, distinguished from user deposit interest.
Locator: Facilitator model; bucket capacity; stability module · Version / scope: Document retrieved 2026-10-02; content hash recorded · Retrieved: 2026-10-02T18:51:09.844ZOpen source - GHO stablecoinAave
Collateral-backed issuance and borrowing interest directed to the DAO treasury.
Locator: What is GHO?; how different · Version / scope: Document retrieved 2026-10-02; content hash recorded · Retrieved: 2026-10-02T18:51:09.104ZOpen source
Research and drafting use AI assistance. A separate automated review checks claims against primary sources; no external expert or named human review is implied. Publication, substantive editing, source retrieval and verification are recorded separately. This version was independently checked by an automated reviewer on 2 October 2026.
Editorial method and correctionsDegrees of Satoshi editorial project. “What is GHO? Aave’s stablecoin.” Published 2026-10-02; updated 2026-10-02. https://degreesofsatoshi.com/encyclopedia/what-is-gho/