Aave founder: GHO will regain its peg after the introduction of the stability module in the coming months

ChainCatcher news, according to dlnews, Benjamin Levit, co-founder and CEO of the stablecoin research company Bluechip, believes that GHO is temporarily unable to maintain a 1:1 peg to the US dollar due to the lack of a proper redemption mechanism and insufficient demand for the token.

In response, Aave founder Stani Kulechov countered for GHO, stating that he believes GHO will restore its peg after improvements such as the launch of the GHO Stability Module in the coming months. The GHO Stability Module (GSM) allows users to use other stablecoins as collateral to mint GHO. GHO minted through GSM can be redeemed 1:1 for the underlying collateral, creating arbitrage opportunities for part of the token supply.