Hassan Maishera
The Aave team announced via Twitter on Friday that it has submitted a proposal for the GHO Stability Module (GSM). The GSM concept aims to enable seamless conversion between GHO Aave and stablecoins at a predefined ratio, with unique functionalities added for increased stability.
The team added that GSM's unique features include adaptable Price Strategies, Debt Ceilings to limit exposure to certain assets, a Capital Allocator for potential yield generation, Last Resort Liquidations for managing increased risk, and Price Bounds/Swap Freezes for handling price deviation.
Aave protocol is a decentralized, open-source, and non-custodial money market protocol. Depositors earn interest by providing liquidity to lending pools, while borrowers can obtain overcollateralized loans by using the liquidity from these pools. AAVE is trading at $70.43 per token, down by 2.5% in the last 24 hours.
