Aave Labs has proposed updating its GHO Stability Module (GSM) to incorporate BlackRock’s tokenized fund BUIDL to help maintain the dollar peg of its stablecoin, GHO. The proposal suggests allowing users to exchange USD Coin (USDC) for BUIDL shares, which are held in a smart contract until GHO is redeemed. BUIDL, with over $502 million in assets, maintains a stable $1 value and provides monthly returns. This move aims to boost GHO’s market cap and open new real-world asset opportunities while leveraging BUIDL’s liquidity and integration with USDC. Currently, the proposal is in the "temp check" phase, awaiting feedback from Aave governance members before proceeding to a vote by AAVE token holders. Source: Cryptoslate