Aave Passes Proposal for Yield Generating Stablecoin GHO
![Aave Passes Proposal for Yield Generating Stablecoin GHO Aave Passes Proposal for Yield Generating Stablecoin GHO](https://www.coindesk.com/resizer/Eqvb8PCTk5MbXyGHTufRlobw1sk=/1200x628/center/middle/cloudfront-us-east-1.images.arcpublishing.com/coindesk/TVPCZ3M5P5E3RJMVLLP2P7CDFA.jpeg)
The token would work similarly to existing algorithmic stablecoins, which mint exactly $1 worth of tokens when users provide $1 worth of cryptocurrency. In GHO’s case, a user must supply collateral (at a specific collateral ratio) to be able to mint GHO. If a user repays a borrow position (or is liquidated), the GHO protocol burns that user’s GHO, the proposal explained.