ChainCatcher reported that according to Cryptoslate, Aave Labs proposed to update its GHO Stable Module (GSM), which involves using shares of BlackRock's tokenized fund BUIDL to help maintain the dollar peg of its GHO stablecoin.
According to the proposal, the new GSM will allow Aave to redeem BUIDL shares with USD Coin (USDC) provided by users to mint its ecosystem's native dollar-backed stablecoin GHO. These tokens will be held in a smart contract until users redeem their GHO for USDC. BUIDL's shares are valued at $1 per token, with daily returns paid to investors every month. The fund divides its assets between cash, U.S. Treasury bills, and repurchase agreements. According to RWA.xyz, BUIDL has over $502 million in assets under management (AUM).