GHO (GHO): tokenomics, risks and score
The native stablecoin of Aave, minted against collateral already deposited in its lending markets, with all interest paid going to the Aave treasury.
What GHO is, and what it does
This is a stablecoin. It is designed to hold a fixed value, almost always one US dollar, so it can be used for payments and trading without the price moving underneath you.
What the GHO token itself does: It captures no protocol revenue. Any value rests on governance rights, on speculation, or on a change that has not happened yet.
Where it runs: Ethereum and multi chain. Mechanism: Overcollateralised stablecoin native to Aave. It has been running since 2023, so roughly 3 years.
The facts
- TICKER
- GHO
- SECTOR
- Stablecoins
- CHAIN
- Ethereum and multi chain
- LAUNCHED
- 2023, so around 3 years of operating history
- MECHANISM
- Overcollateralised stablecoin native to Aave
- MAXIMUM SUPPLY
- Minted against collateral in Aave
- VALUE CAPTURE
- None
- UPGRADE CONTROL
- DAO governed
- VESTING
- Complete
- LIQUIDITY BAND
- Micro cap. Thin, often a single venue or pool. Treat the quoted price as indicative only.
How the score breaks down
Each dimension is explained on the directory page, and the reasoning behind it is taught in the Academy research process.
Supply and value capture
Supply expands and contracts by design rather than following a fixed schedule. The token captures no protocol revenue. Any value rests on governance rights, speculation, or future changes that have not happened yet.
Changes go through token holder governance, so control is distributed but influenced by whoever holds most. Supply is spread widely across many holders.
Where it is strong and where it is not
- Audited, with published reports
- Fully open source, so the code can be independently reviewed
- Vesting is complete, so there is no scheduled supply overhang
- The token captures no protocol revenue, so its value rests on sentiment
- Thin liquidity. Check order book depth before assuming you can exit
- Has 1 recorded incident on its history
Incident history
Traded persistently below its peg for an extended period after launch until interest rate parameters and mint facilities were adjusted.
Our read
The main risk
It traded below peg for a long period after launch, and it inherits the collateral risk of the lending protocol.
Before you buy anything
Check the contract address against the project's own documentation rather than a search result or a screener link, since impersonation tokens with identical names and logos are listed constantly. Check the order book depth before assuming you can exit at the quoted price. And write down what would make you wrong before you buy, not after. The Academy thesis module covers why that single habit protects more capital than any indicator.