Aave Wants To Launch Its Own GHO Stablecoin

Aave developers have proposed to the community to launch a GHO multi-collateral stablecoin pegged to the US dollar. As collateral for GHO, a “diversified set of crypto assets” supported by the protocol will be used. Users will continue to receive interest on pledged tokens.

Decisions regarding the GHO, including interest rates, collateral levels, etc., will be made by the DAO. The developers proposed to provide a discount on the issuance of a stablecoin to holders of the AAVE token in staking. In their opinion, this stimulates the growth of stkAAVE volumes, which will increase the security of the protocol.

It is assumed that the release and burning of GHO will be controlled by community-approved "facilitators" with an established emission limit. If the proposal is approved by the community, the stablecoin will be audited by OpenZeppelin and PeckShield experts. Deployment of GHO in the protocol and other networks will require a new vote.

Image: Watcher Guru