What is the GHO Stability Module?

The GHO Stability Module (GSM) allows swaps between GHO and other governance-accepted stablecoins, offering a variety of functionalities where security and risk management are paramount.

Is GHO always fixed 1:1 with the US Dollar?

The GHO Stability Module is based on an existing contract called a Peg Stability Module (PSM) which enables the conversion of two tokens at a predetermined ratio. The GHO Stability Module (GSM) leverages the benefits of existing PSM models while innovating upon them in several ways to help further maintain GHO’s peg. The GSM is designed to facilitate conversions between GHO and governance-approved tokens, underpinned by a suite of features designed for flexible operations and risk management.

The GSM introduces a flexible Price Strategy framework, enabling the module to adapt its pricing mechanism based on market conditions or strategic objectives. This system supports both fixed and dynamic pricing strategies, allowing for adjustments in response to real-time market data or predetermined conditions. The initial implementation focuses on a fixed 1:1 pricing strategy for simplicity and stability, with provisions for future adaptation to dynamic strategies as dictated by DAO governance.