TokenLogic has proposed a permissioned GHO Stability Module, or GSM, for Aave V4 on Avalanche that would enable approved counterparties to exchange waUSAT—receipt tokens for USAT deposits—into GHO stablecoin. The proposal, submitted on October 15, includes approval requirements for both directions of the swap, meaning access to convert GHO back to waUSAT could be revoked after an institution has completed its initial deposit.
The return path to dollars would involve three separate conditions: approval for the return swap, the ability to withdraw underlying USAT from Aave's lending protocol, and eligibility to redeem USAT directly with Anchorage Digital Bank, USAT's issuer. The permission check would apply each time a swap occurs, and revoking a participant's approval would prevent further swaps, including those intended to recover previously deposited assets.
How the Gateway Would Function
Approved participants would supply USAT to Aave V4's Tokenization Spoke and receive waUSAT in return. Those receipt tokens would then be exchanged for GHO through the GSM, which would hold the waUSAT while the underlying USAT remained in Aave's lending pool. The return swap would recover waUSAT rather than directly delivering USAT or dollars.
An approved originator could designate another recipient or use a relayer to submit a valid swap without requiring separate participant approval, though the approval requirement would remain on the originator. GHO received through the module would remain freely transferable even if the participant's module access were later revoked.
Proposed Parameters and Liquidity
The initial whitelist would include a commercial counterparty and an Aave DAO Safe controlled by the Aave Finance Committee. Both would access the same shared liquidity and pricing structure. The module would not track individual principal balances or require a participant's swaps to match its earlier deposits.
The proposal specifies an initial reserve funding of 65 million GHO, a remote GSM draw limit of 25 million GHO, and an asset exposure cap of 20 million waUSAT. The GSM would charge zero fees for swaps in both directions, though Anchorage Digital Bank maintains a separate 10 basis point redemption fee for USAT conversions.
Additional Conditions for Dollar Access
Anchorage's USAT policies limit issuance and redemption to clients with an active account relationship under a written agreement. Holding USAT alone does not establish this relationship; clients must have the necessary assets at the bank, and completion requires processing and settlement. Redemption requests may be delayed, restricted, or refused for legal, risk, or operational reasons.
The proposal also includes emergency controls. Freezing would halt exchanges, and seizure would transfer module-held assets to a designated treasury. According to the proposal, restrictions on reversing a swap would need to be reflected in counterparty agreements.
As of October 18, the proposal remains in its initial stages, with a Snapshot vote followed by an implementation proposal as the next steps. Important addresses, contracts, and the pricing strategy remain unspecified.
