GHO

GHO (pronounced “go”) is an Aave-native ERC-20 stablecoin intended to maintain a value near one U.S. dollar. It is not described by the evidence as a bank deposit, a share in Aave, or a guaranteed redemption claim. Supply is created and destroyed through approved facilitator contracts under governance-defined limits.

GHO gives Aave users a protocol-native dollar-denominated borrowing asset instead of requiring a third-party stablecoin for every use case. The design aims to combine overcollateralized borrowing with governance-controlled supply capacity and multiple mechanisms for liquidity and peg management. These mechanisms reduce some risks but do not guarantee a $1 price or a legal redemption right.

A user supplies eligible collateral to an Aave market and can borrow GHO while meeting that market's collateral and health-factor rules. Facilitator contracts can mint GHO only within their assigned bucket capacity and can burn tokens when debt or a related position is repaid. Aave Governance approves facilitators and controls key capacity parameters; the GHO Stability Module can exchange GHO with governance-approved stablecoins under its configured pricing, fee, exposure and freeze controls. GHO is originated on Ethereum and is made available on other networks through approved cross-chain infrastructure. The documentation describes adaptive pricing and parameter changes as governance-controlled capabilities, not as a promise that every planned configuration is already active.