GHO · interactive mechanism simulation

Borrowers mint GHO against Aave collateral through a facilitator bucket at a governance-set rate. If that rate sits far below the market rate and no GSM redemption path exists, minting-and-selling dominates and the peg drifts — as it did for six months in 2023.
Borrowers deposit collateral Aave V3 facilitator borrow rate 1.5% GHO token 0 GHO minted Open market price $1.000 GSM USDC⇄GHO active Arbitrageurs redeem/mint at peg Aave DAO treasury $0 interest
GHO supply
0
Peg price
$1.000
Treasury interest revenue
$0
GSM reserve
$0
Parameters — edit me
1.5%
1.4/s
on
10%
Controls

Illustrative simulation. Models GHO's facilitator minting, market rate spread, and GSM redemption arbitrage; the trigger button reproduces the 2023 dynamic of a below-market fixed rate with no redemption path. Amounts and timing are randomized for visualization — not live onchain data. Part of The Onchain Experiment Atlas.