cryptonews.net
According to statistics from DeFiLlama, it has been less than 48 hours since DeFi lender Aave launched its new dollar-pegged algorithmic stablecoin GHO on Ethereum and has already minted $2.5 mln worth of coins. The launch was almost unanimously approved by the holders of the AAVE protocol governance token.
Aave DAO oversees the management of the GHO, including setting and adjusting the total supply, interest rate, and coinage limits, defining risk parameters, and approving and managing facilitators. GHO has been deployed in the Aave V3 market. Users can create it by collateralizing other cryptocurrencies available on Aave V3, including AAVE, ETH, USDT, USDC and DAI.
Since the GHO is overcollateralized, the total value of the reserves staked on its minting far exceeds the value of the GHO in circulation. According to the official blog post released during the launch, Aave V3's total mining power as a facilitator is 100 mln GHO. Although the current proposal indicates that only 2.5% has been minted so far, this limit may be increased by Aave DAO after another community vote.
Image: Coin Culture