cryptonews.com
In just 48 hours of being launched, Aave's $GHO, an algorithmic stablecoin pegged to the United States dollar on the Ethereum network, has already achieved a total minting value of $2.5 million.
On July 15, Aave launched $GHO, a decentralized and over-collateralized stablecoin backed by a variety of digital assets, including Ethereum's Ether ($ETH) and Aave's token ($AAVE).
With a market capitalization of $2.59 million and a current price of $0.99, $GHO ($GHO) has a total circulating supply of 2.61 million, according to DefiLama.
The successful launch of $GHO on the mainnet was the result of a community governance vote conducted by the Aave DAO, responsible for overseeing $GHO's governance.
The governing body, composed of members, will have the authority to determine the stablecoin's supply, interest rates, and minting limits. They will also approve and supervise facilitators who can create $GHO under specific conditions.
Out of the 424 participating addresses, an overwhelming majority, nearly 100%, voted in favor of the new stablecoin.
In the final vote on July 10, 421 wallets holding 881,059 $AAVE tokens supported the launch, while only three wallets collectively holding 10 $AAVE, with one wallet having the entire 10 $AAVE and the remaining two wallets holding fractions, voted against it.
Aave Launched $GHO: Over-Collateralized Stablecoin on Aave V3 Market
Aave, the lending protocol, launched $GHO, its over-collateralized stablecoin, on the Aave V3 market.
Users can now generate $GHO by utilizing a variety of cryptocurrencies listed on Aave V3, including $AAVE, $ETH, $USDT, USDC, and DAI, as collateral.
This ensures that $GHO maintains a diverse range of assets for over-collateralization.
According to the latest update from token terminal, Aave's total locked value has experienced remarkable growth, reaching $5.938 billion. This represents a significant 16% increase compared to the previous month and can be attributed to the successful launch of the $GHO platform.
Furthermore, the circulating market cap of Aave has surged impressively by 52.85%, currently standing at $1.13 billion.
"Anyone can mint $GHO using the assets they supply into the Aave Protocol V3 Ethereum market as collateral, ensuring that $GHO is overcollateralized by many assets," Aave wrote in a blog post.
During its launch, Aave V3 revealed that its Facilitator has a total minting capacity of 100 million $GHO, with only 2.5% of the supply currently minted. However, the Aave DAO has the ability to increase this cap through a community vote.
In the Aave V3 protocol, deposited collateral continues to generate yield, while the interest paid for borrowing $GHO is directed to the DAO treasury, governed by $AAVE and stkAAVE token holders.
Additionally, users contributing $AAVE to the protocol's safety module to support the stablecoin can purchase $GHO at a discounted rate.
What sets $GHO apart from centralized stablecoins like Tether's $USDT is its commitment to transparency and verifiability of underlying assets.
Aave ensures that the assets supporting $GHO can be audited directly from the blockchain or through various user interfaces, thanks to the execution of transactions via self-executing smart contracts.