Who controls it
GHO is backed by on-chain collateral. Aave governance can change its parameters, but it cannot freeze an address.
- Holder’s claim
- GHO is an Aave-native stablecoin created against approved collateral under governance-set parameters. It is not a bank liability.
- Redemption or sale
- There is no Circle-style one-dollar issuer redemption. Stability depends on protocol mechanisms, collateral, incentives, and market liquidity.
Dependencies
- Aave governance and facilitators
- Approved collateral and risk parameters
- Oracle and liquidation systems
- Savings or staking contracts when using sGHO
- Ethereum or another supported settlement chain
Advisor notes
“Stablecoin” covers too many designs to diligence as one category. GHO and USDC can sit in the same lending market and still differ in who controls them and how they are redeemed. Aave governance sets GHO’s terms and no issuer redeems it at one dollar; Circle administers USDC and redeems it for eligible customers.
On-chain collateral and governance set the terms, but no issuer blocklist exists. This grade can sit beside a sound reserve, a useful product, or a fitting role in a client account. It records who can act on the token and passes no judgment on the product.
Questions before use
- Does the exact contract and chain match the instrument reviewed here?
- Which party can mint, burn, pause, upgrade, block, or redeem?
- Does the client have direct redemption access or only secondary liquidity?
- What protocol, bridge, wallet, and custodian dependencies are added?
- Which event would force a review or a sale?
Sources
Issuers can change their documents and product terms. This page gives our reading of control as of 2026-08-19. Check the current terms before a client buys.
Legend: No freeze key: no issuer or administrator can freeze an address at this layer · Governed, no freeze: on-chain collateral and governance set the terms, but no issuer blocklist exists · Mixed control: on-chain mechanisms sit beside custodians, real-world assets, a central transaction orderer, or other parties a court or regulator can compel · Issuer can freeze: a named organization or administrator controls issuance, transfers, reserves, redemption, or address restrictions. How grading works.