2023-07-13 23:14:43
© Reuters Aave is about to launch its stablecoin on Ethereum
CriptoFácil – The decentralized finance (DeFi) platform (AAVE) is on the verge of a significant transformation. This is because the protocol team is preparing for the issuance of its own stablecoin on the mainnet, in case the community vote approves the initiative.
The introduction of the GHO on the Ethereum network is an eagerly awaited move, and depends on the will expressed by the community through voting.
According to information available on the official Aave website, voting started on July 10th and will end on July 14th at 09:40 UTC. Participation has been remarkable, with 714,263 AAVE governance tokens being used to vote in favor of the proposal, and just 10 AAVE against.
The proposal is facilitated by Aave V3 Ethereum Pool Facilitator and FlashMinter. The integration of the former will facilitate depositors to apply for GHO loans in exchange for their Ether() deposited on the platform.
FlashMinter, on the other hand, will allow access to “flash loans” from Aave, making it possible to obtain stablecoin loans.
Stablecoin da Aave
If the proposal is approved, the GHO stablecoin, which has been circulating on the Ethereum testnet since August 2022, will transition to the Ethereum mainnet. This development is the result of an extensive process that involved community discussion and several phases of the Aave DAO governance process.
Aave clarified that, upon approval, Aave V3 users on Ethereum will be able to start building units of the stablecoin GHO against their ETH deposits, at an annual interest rate of 1.5%.
Furthermore, the arrival of the GHO stablecoin will allow lending to become more competitive, as well as generating additional income for AaveDAO.
The developers added that AaveDAO will be able to adjust the stablecoin’s interest rate as needed over time, through a governance process, and will be responsible for managing the financial structure of the GHO in a decentralized manner.
This move represents the conclusion of a process started a year ago, when Aave proposed the creation of its own stablecoin, backed by the US dollar and guaranteed by various collateral assets.
The GHO stablecoin will function similarly to the DAI, issued by the MakerDAO protocol. Users give an asset as collateral to issue a specific amount of cryptocurrencies, received as a loan. When the debt is paid off, the borrowed GHOs are burned and the interest goes into the AaveDAO treasury.
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