The Aave DAO community is preparing to vote on whether to launch the GHO stablecoin on the Ethereum blockchain. The voting process will begin today. Aave is a prominent cryptocurrency platform that allows users to earn yields on their staked tokens. GHO is a stablecoin developed by the Aave team. Users will be able to mint GHO stablecoins against a diversified set of crypto assets. If approved, GHO will be introduced through “facilitators” in Aave version 3 (V3), allowing the stablecoin to be minted against tokens available on the platform. The introduction of GHO is expected to make stablecoin borrowing on Aave more competitive and generate additional revenue for the Aave DAO.

GHO Already Live on Ethereum’s Goerli Testnet

The GHO stablecoin has been available on the Ethereum blockchain’s Goerli testnet since February. During this time, there have been no major bugs affecting its functionality. AAVE, the native coin of the Aave ecosystem, has seen a 3% increase in price in the last 24 hours. The Aave team has announced that once the stablecoin launches on the Ethereum network, users will be able to mint GHO tokens using their supplied collateral. The GHO stablecoin will be backed by a diverse range of cryptocurrencies chosen by users, and borrowers will continue to earn interest on their collateral assets. GHO will be pegged to $1, and users will need to supply collateral at a specific ratio to mint GHO. Repaying loans will result in the burning of GHO stablecoins.

FAQ

What is Aave DAO?

Aave DAO is a decentralized autonomous organization that governs the Aave protocol, a decentralized lending platform built on the Ethereum blockchain. It allows users to earn interest on their cryptocurrency holdings and borrow assets against their collateral.

What is GHO stablecoin?

GHO is a stablecoin developed by the Aave team. It is pegged to $1 and can be minted against a diversified set of crypto assets. GHO holders can earn interest on their supplied collateral, similar to other lending services on Aave.

How does the voting process work in Aave DAO?

In Aave DAO, community members can vote on proposals using Aave’s native governance token, AAVE. Each AAVE token represents one vote, and the voting outcomes are determined by a majority of votes cast.

When will the voting on GHO deployment take place?

The voting on GHO deployment will begin today. Community members of Aave DAO will have a specific timeframe to cast their votes.

Summary

The Aave DAO community is set to vote on whether to launch the GHO stablecoin on the Ethereum blockchain. If approved, GHO will be introduced through facilitators in Aave version 3 (V3), allowing users to mint GHO stablecoins against their collateral. The introduction of GHO is expected to make stablecoin borrowing on Aave more competitive and generate additional revenue for the Aave DAO. GHO has been available on the Ethereum blockchain’s Goerli testnet since February without any major bugs. AAVE, the native coin of the Aave ecosystem, has seen a 3% price increase. The GHO stablecoin will be backed by a diversified set of crypto assets, and borrowers will continue to earn interest on their collateral assets.