Update
Aave’s Proposed USAT Gateway Requires Approval for Return Swaps
Aave’s proposed USAT-to-GHO route would require approval for every return swap, even after a deposit. Revocation of approval could block recovery of waUSAT receipts through the module. GHO would remain freely transferable. The proposed USAT gateway would require approval for return swaps, even after a deposit, allowing access to be revoked after an institution had exchanged its deposit receipts for GHO. TokenLogic’s Oct. 15 governance proposal would introduce a permissioned GHO Stability Module, or GSM, on Avalanche. It would let approved counterparties exchange waUSAT, a receipt for the dollar stablecoin USAT supplied to Aave V4, for GHO. Approval would apply in both directions, so revocation could prevent a participant from returning GHO to recover waUSAT.