GHO: who controls it?

The control finding

Aave-native stablecoin backed by on-chain collateral. Aave governance sets parameters, but there is no address freeze list.

Named controller

Aave governance

Holder’s position

GHO is an Aave-native stablecoin created against approved collateral under governance-set parameters. It is not a bank liability.

Redemption or exit

There is no Circle-style one-dollar issuer redemption. Stability depends on protocol mechanisms, collateral, incentives, and market liquidity.

Dependencies an advisor should record

• Aave governance and facilitators
• Approved collateral and risk parameters
• Oracle and liquidation systems
• Savings or staking contracts when using sGHO
• Ethereum or another supported settlement chain

Why this distinction matters

GHO illustrates why “stablecoin” is too broad a diligence category. Its control and redemption model differs materially from USDC even when both appear in the same lending venue.

On-chain governance or collateral mechanisms matter, but no conventional issuer blocklist defines the asset. That finding can coexist with a sound reserve, useful product, or appropriate client role. The grade prevents the on-chain wrapper from being mistaken for the absence of an administrator.

Questions before use

1. Does the exact contract and chain match the instrument reviewed here?
2. Which party can mint, burn, pause, upgrade, block, or redeem?
3. Does the client have direct redemption access or only secondary liquidity?
4. What protocol, bridge, wallet, and custodian dependencies are added?
5. Which event would force review or exit?