Risk Factors for GHO
- !GHO has de-pegged below $1 multiple times due to excess minting versus demand
- !Borrow rate subsidies are unsustainable long-term and will increase as the protocol matures
- !Smart contract risk inherited from Aave v3 — a critical Aave bug would impact GHO
- !GHO supply is capped by governance to prevent inflationary de-peg risk
- !Competition from crvUSD, DAI, and other CDP stablecoins limits addressable market
- !Aave governance has significant whale concentration, creating centralization risk in GHO policy decisions
Peg Stability
GHO maintains its $1.00 peg through its Crypto-Collateralized mechanism. Monitor real-time peg deviations using the BTC.PH Depeg Monitor.
Risk Mitigation Tips
- +Diversify across multiple stablecoins — never hold all funds in a single issuer
- +Monitor reserve attestations and audit reports published by Aave DAO
- +Use hardware wallets for self-custody to eliminate exchange counterparty risk
- +Set price alerts below $0.995 to react quickly if GHO begins to de-peg
- +Only deploy into yield strategies you fully understand — complexity multiplies risk