Aave Labs proposed an update to its GHO Stability Module (GSM), which involves using BlackRock’s tokenized fund BUIDL’s shares to help maintain the dollar peg of its stablecoin.

According to the proposal, a new GSM would let Aave exchange users’ USD Coin (USDC) given to mint its ecosystem native dollar-backed stablecoin GHO for BUIDL shares. The tokens would be held in a smart contract until the user redeems its GHO for USDC.