Aave Labs has recently proposed an innovative initiative aimed at enhancing the stability of its GHO stablecoin through collaboration with BlackRock's BUIDL tokenized fund. At the core of this plan is the introduction of a new GSM (GHO Stability Module), which enables users to exchange USDC (a dollar-pegged stablecoin) for BUIDL shares to mint GHO stablecoins that are backed by the U.S. dollar. This innovative mechanism stores tokens in smart contracts until users opt to redeem their GHO for USDC. Known for its stable market value and daily returns paid to investors, BUIDL's portfolio primarily consists of cash, U.S. Treasury securities, and repurchase agreements. According to data from RWA.xyz, BUIDL's assets under management exceed $502 million, providing a solid backing for the GHO stablecoin and further solidifying its peg to the U.S. dollar.