Aave’s proposed USAT gateway could cut off the return swap after a deposit

Aave’s proposed USAT gateway would require approval for every return swap, 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.That creates three separate conditions on the route back to dollars: access to the return swap, the ability to withdraw underlying USAT from lending, and eligibility to redeem USAT with its issuer, Anchorage Digital Bank.As of Oct. 18, the public proposal still describes a Snapshot vote followed, if approved, by an implementation proposal as its next steps. Important addresses and contracts remain unspecified.The proposed entry route involves two transactions. An approved counterparty would supply USAT to Aave V4’s Tokenization Spoke and receive waUSAT. It would then exchange those receipt tokens for GHO through the GSM, which would hold the waUSAT while the USA...