Aave set to vote on launching GHO stablecoin on Ethereum mainnet

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By BitcoinWiki News

Key Takeaways:

– Aave Companies proposes launching the decentralized stablecoin GHO as an ERC-20 token on the Ethereum mainnet
– GHO would be introduced through Facilitators on Aave version 3 (V3), allowing users to mint GHO against their collateral
– The proposal aims to make stablecoin borrowing on Aave more competitive and generate additional revenue for the Aave DAO
– The Aave DAO will have the ability to adjust GHO’s interest rate through decentralized governance
– The proposal is pending, with voting set to commence later today until July 14
– Facilitators will be used to generate and burn GHO tokens, combining the Aave V3 Ethereum Pool Facilitator and the FlashMinter Facilitator
– The Aave V3 Ethereum Pool Facilitator enables users to borrow GHO using collateral deposited in the V3 Ethereum mainnet pool
– The FlashMinter Facilitator allows users to flash mint GHO without collateral, enhancing GHO’s ability to maintain its peg through efficient arbitrage
– The proposal includes a plan to use Staked Aave (stkAAVE) tokens to reduce the borrowing cost for GHO stablecoin users
– Aave Companies is considering a multi-chain strategy following the proposed GHO launch on Ethereum.


Aave Companies, a contributor to the Aave DeFi lending protocol, has proposed launching the decentralized stablecoin GHO as an ERC-20 token on the Ethereum mainnet. The proposal aims to introduce GHO through Facilitators, allowing users of Aave version 3 (V3) to mint GHO against their collateral. If approved, the introduction of GHO would make stablecoin borrowing on the Aave Protocol more competitive and generate additional revenue for the Aave DAO. The Aave DAO will also have the ability to adjust GHO’s interest rate through decentralized governance. The proposal is currently pending and voting will commence later today until July 14. The proposal follows extensive community discussions and months of testing on Ethereum’s Goerli testnet. The GHO token will be generated and burned by the Facilitators, which include the Aave V3 Ethereum Pool Facilitator and the FlashMinter Facilitator. The Aave V3 Ethereum Pool Facilitator will allow users to borrow GHO using collateral deposited in the V3 Ethereum mainnet pool, while the FlashMinter Facilitator enables users to flash mint GHO without collateral. The proposal also includes a plan to use Staked Aave (stkAAVE) tokens to reduce the borrowing cost for GHO stablecoin users. Aave Companies is also considering a multi-chain strategy following the proposed GHO launch on Ethereum.

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