Aave DAO Introduces GHO Stablecoin on Ethereum Mainnet
Summary: GHO, a decentralized stablecoin has been launched by Aave DAO on the Ethereum mainnet. Iit aims to provide transparency and market efficiency for users. GHO differs from MakerDAO's DAI due to its collateral-based minting process. The Aave DAO will decide on interest rates, cap on new GHO creation, and regulations.
GHO, a decentralized stablecoin, has been launched on the Ethereum mainnet by Aave DAO platform. To provide transparency for its users, the stablecoin is created using a broad range of collateral assets stored inside the Aave Protocol. Aave’s goal in providing this feature is to provide its customers with greater freedom.
There are already 30 Ethereum-based currencies that may be pooled on Aave, including the prominent stablecoins Tether (USDT) and USD Coin (USDC). Pools representing real-world assets, like real estate, may be created on the platform and tokenized for use as currency or security.
Encouraging Feedback From Community
The platform’s goal in launching the GHO stablecoin was to make its ecosystem more readily available to users at lower prices and with more market efficiency. However, the group has declared its intent to present a multi-chain proposal to the public for approval.
The idea to create GHO was pitched to the Aave DAO in June of 2022. Developers placed GHO on the Ethereum Testnet in February to make any necessary improvements before the protocol’s official release, and they received encouraging feedback from the Ethereum community.
In contrast to MakerDAO’s DAI, another stablecoin, GHO distinguishes out because of its collateral-based minting process. While GHO allows for several types of collateral to be put in a single transaction, DAI necessitates separate vaults for each asset utilized in the minting process.
Because of its decentralized nature, the Aave DAO will decide on the interest rate, the cap on new GHO creation, and the regulations for doing so.
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