Decentralized finance protocol Aave has taken another big step by officially rolling out its decentralized GHO GHO stable, following a massive vote of support from its community. So far, users can stake GHO by depositing cryptocurrencies as collateral on Aave.
Aave deploys its GHO stablecoin
The decentralized financial protocol Aave has formalized the launch of its decentralized GHO stablecoin after an overwhelmingly favorable vote from his community. As mentioned in Aave’s press release, users can hit GHO (pronounced GO) when they deposit cryptocurrencies as collateral on the protocol.
The Aave DAO has been launched successfully @GHOAave on the Ethereum Mainnet. Congratulations to the Aave community on this historic moment! pic.twitter.com/Br3QGqMU8X
— Aave (@AaveAave) July 15, 2023
Like Aave, the GHO stablecoin was designed in a completely decentralized way, which is why its creation, deployment and future managed entirely by the decentralized autonomous organization (DAO) of the protocol. Therefore, any change that is applied to the GHO will have to be the subject of a vote within the DAO, which will decide whether such a proposal must be accepted, or whether or not it must be rejected.
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The GHO was deployed today on the Aave V3 market with a maximum issue set at 100 million dollars, a ceiling that can be modified later through the DAO system just mentioned. In addition, AAVE token holders will be able to benefit from a 30% discount on the GHO lending rate if they decide to deposit their tokens as collateral, ensuring a virtuous circle for the protocol.
“As Aave’s native decentralized and hyper-collateralized asset, GHO has the potential to become a stable primary currency and, in the future, an important payment layer for the Internet. »
The GHO will be introduced through “enablers”, entities hand-picked by DAO Aave, who will have GHO reserves (called “buckets”). To begin with, the GHO will be distributed through the “Ethereum V3 Pool” and “FlashMinter Facilitator” facilitators.
As the name suggests, the first is based on the Aave V3 market liquidity pool on Ethereum (ETH). Meanwhile, the FlashMinter allows the use of flash loans to provide instant liquidity.
This step forward by Aave shows the interest of DeFi platforms in creating dedicated decentralized stablecoins, after Curve rolled out its own (crvUSD) last May.
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I wrote articles for Cryptoast to help make blockchain more accessible to everyone. Surely cryptocurrencies will change the future very soon.
Maximilien Pru
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