GHO is a decentralized, overcollateralized stablecoin native to the Aave ecosystem. Unlike traditional fiat-backed stablecoins, GHO is minted by borrowing against crypto collateral deposited in Aave, allowing users to access a stable, dollar-pegged asset without relying on centralized reserves.

GHO integrates directly with Aave’s lending and borrowing protocols, enabling users to mint, repay, and utilize GHO across DeFi applications. The protocol is designed to maintain its peg through overcollateralization, interest rates, and dynamic risk parameters, offering a secure, decentralized alternative to fiat-backed stablecoins.