Despite the collapse of the UST project and the tightening of regulation, Aave DAO, the governing body of the Aave DeFi protocol, voted in favor of the proposal to create a new stablecoin.
According to the data on the voting page, DAO members with 501,000 AAVE tokens almost unanimously supported the proposal, 99.99% in favor of issuing a stablecoin.
The next step is to develop and release a stablecoin using the new Aave Improvement Protocol (AIP). After the launch of Aave, DAO will act as the issuer and manage the GHO stablecoin.
Aave users who wish to create a GHO will be able to do so by providing any of the assets accepted as collateral on the platform. In addition to collateral, deposits must generate income on Aave. The protocol will charge interest on GHO stablecoin loans taken by borrowers.
The Aave team plans for GHO to be over-collateralized, similar to MakerDAO’s DAI stablecoin. That is, the value of the deposited cryptocurrency will exceed the number of issued GHO tokens.
Aave founder Stani Kulechov has previously stated that the project will facilitate the organic adoption of GHO on the second layer of Ethereum. By creating a stablecoin, Aave will join a select group of DeFi stablecoin issuers along with MakerDAO.
The GHO stablecoin is created on the basis of the Ethereum blockchain, pegged to the US dollar and secured at the discretion of the user. To get GHO, you need to issue a stablecoin against the security of your asset.
The Aave team announced the launch of the GHO stablecoin in early July. Voting began on July 28 and ended on the 31st. However, Tobias Adrian, director of capital markets at the International Monetary Fund (IMF), said this month that fiat and algorithmic stablecoins are in for trouble, and the USDT-backed stablecoin is no exception.
Source: Bits
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