Aave Labs proposes to integrate GHO stablecoin with BlackRock BUIDL fund
The Block, Aave Labs has proposed a temperature check proposal to update the GHO stable module (GSM) and integrate it with BlackRock's tokenized fund BUIDL. The main function of GSM is to ensure the 1:1 exchangeability of Aave's native stablecoin GHO with other assets. The proposal suggests building a new GSM instance that supports external integration and related control mechanisms, especially supporting BlackRock's BUIDL. Currently, the proposal is in the temperature check phase and is accepting feedback from Aave governance members. If the community feedback is positive, AAVE token holders will vote on its implementation. BUIDL is a tokenized fund that represents traditional assets such as cash and US government bonds. The proposal plans to achieve a fixed 1:1 exchange ratio between USDC and GHO, and use the user's remaining USDC to mint equivalent dollar-denominated BUIDL shares. This may bring monthly BUIDL dividends to users, while exchange fees will accumulate in the form of GHO stablecoins. Aave Labs stated that this implementation plan can improve the capital efficiency of GSM while maintaining high standards of support, as USDC still serves as the support for GHO. In addition, the integration of BUIDL and GSM may open up new sources of revenue for Aave DAO, expand into the physical asset field, and create opportunities for future cooperation with BlackRock, a global leading financial institution.
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