Aave Submits A Proposal For Its GHO Stablecoin

Twitter icon  •  Published 4 months ago  •  Hassan Maishera

The Aave team announced via a Medium post on Thursday that it has submitted a proposal for the launch of the GHO stablecoin to its governance board.

The Aave team announced via a Medium post on Thursday that it has submitted a proposal for the launch of the GHO stablecoin to its governance board. The team said GHO can be launched on the Aave Protocol, allowing users to mint GHO against their supplied collaterals. GHO would be backed by a diversified set of crypto-assets chosen at the users’ discretion, while borrowers continue earning interest on their underlying collateral.

Aave added that if approved, the introduction of GHO would make stablecoin borrowing on the Aave Protocol more competitive, provide more optionality for stablecoin users and generate additional revenue for the Aave DAO by sending 100% of interest payments on GHO borrows to the DAO.

Aave protocol is a decentralized, open-source, and non-custodial money market protocol. Depositors earn interest by providing liquidity to lending pools, while borrowers can obtain overcollateralized loans by using the liquidity from these pools.

AAVE is trading at $71.5 per token, up by 13% in the last 24 hours. 

Author

Hassan Maishera

Hassan is a Nigeria-based financial content creator that has invested in many different blockchain projects, including Bitcoin, Ether, Stellar Lumens, Cardano, VeChain and Solana. He currently works as a financial markets and cryptocurrency writer and has contributed to a large number of the leading FX, stock and cryptocurrency blogs in the world.

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