The new asset will be launched after a full security audit

Aave DAO approves the launch of decentralized stablecoin GHO

01.08.2022 - 06:45

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2 min

What’s new? The community of the Aave decentralized protocol has voted on a proposalto launch the GHO stablecoin pegged to the US dollar. The next step is a vote on the parameters for the genesis of GHO, which will take place next week. This is reported on the official Twitter of the Aave project. The initiative was supported by 99,9% of the participants.

Aave is a decentralized protocol for lending and borrowing cryptocurrencies. The founder is the programmer Stani Kulechov. The native token AAVE ranks 41st in the rating of cryptocurrencies by market capitalization with a figure of $1,377 billion. As of August 1, 06:40 UTC, the asset is trading at $98,33, having gained 2,69% per day (according to Binance). The total value locked (TVL) in the protocol is $6,55 billion (DefiLlama’s data).

What is known about the new asset? An overcollateralized model is proposed for the GHO stablecoin. The collateral is a diversified set of assets to be chosen by the community. The stablecoin will be governed by a decentralized autonomous organization, Aave DAO.

When asked by users about the timing of the launch, Marc Zeller, integrations lead at Aave, stressed that it will depend on the results of an audit by OpenZeppelin and PeckShield. In addition, the team is not focused on the speed of deployment, but on the security of the project.

Aave developers proposed the idea of releasing a decentralized stablecoin to the community in July. According to the proposal, users will be able to issue the asset against their supplied collaterals, with 100% of interest payments on GHO borrows being sent to AaveDAO, due to which the organization will provide additional income. It was noted that the introduction of GHO would make the borrowing of stablecoins through the Aave protocol more competitive.

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