A governance proposal to create a cryptocurrency-backed stablecoin on the Aave protocol has been unanimously approved by the Aave community. snapshot vote It lasted until Sunday.
July 7, 2022, suggestion Introduced by Aave Companies (the development team behind the Aave protocol) for the launch of GHO, an overcollateralized and USD-pegged stablecoin.
After due consideration by the community, 12 votes voted against and 17 votes abstained. Ultimately, the proposal received 99.9% approval from community members who committed over 500,000 of his AAVE tokens.
The community has given GHO the go-ahead 🟢 👻 The next step is to vote on GHO’s genesis parameters.Stay tuned for suggestions at next week’s Governance Forum https://t.co/ba4oK50Wb8
— Aave (@AaveAave) July 31, 2022
The approved proposal also includes Aave V2 on Ethereum becoming the first facilitator of GHO. As a facilitator, Aave can provide liquidity by generating and burning his GHO tokens as needed.
Further discussion on the stablecoin launch will begin this week via the Aave Governance Forum.
GHO stablecoin proposal
The GHO’s initial proposal confirmed that it would be a decentralized, over-collateralized stablecoin backed by a “diverse set of crypto assets” and pegged to the US dollar.
Users can create GHOs by providing approved collateral at the specified collateral ratio. If the user chooses to borrow, the user promises the required collateral and pays some interest. Borrowing rates are flexible and determined by Aave DAO.
If the loan is repaid, the provided GHO will be burned by the GHO protocol and interest payments incurred on such transactions will be sent to the Aave DAO Treasury.
Wen GHO?
According to Aave founder Stani Kulechov, Tweet, GHO contract development is at an advanced stage. The first audit was processed by OpenZeppelin on July 11, 2022.
The development of GHO has been completed. The first audit is scheduled for July 11, 2022. @Open Zeppelin Additional audits and formal verifications then take place.
— stani.lens (🌿, 👻) (@StaniKulechov) July 7, 2022
With the Aave community working hard behind the project, we can expect the GHO stablecoin to hit the market soon. Aave also hinted at starting discussions on related parameters that will be implemented in the first iteration of the stablecoin.
When the approval was first announced on Sunday, the AAVE native token initially surged from $95 to $108 (an increase of 13.7).But it came back to about $97as per overall crypto market trends, declined 2.02% The total market capitalization in the last 24 hours is $1.08 trillion.
