Saturday, September 23, 2023

Aave DAO community members will begin voting whether to deploy the much-awaited gho (GHO) stablecoin on the Ethereum blockchain later today, an Aave Improvement Proposal (AIP) shows.

Aave is a lending and borrowing platform that allows users to earn yields on their pledged tokens. The gho token can be minted by users against a diversified set of crypto assets. GHO holders will continue to earn interest on the supplied collateral, just as in other lending transactions on Aave, which means ghost in Finnish.

The proposal seeks to introduce GHO through so-called “facilitators,” allowing users of Aave version 3 (V3) to mint GHO against token holdings supplied to the platform.

“If approved, the introduction of GHO would make stablecoin borrowing on the Aave Protocol more competitive and generate additional revenue for the Aave DAO by providing to the DAO treasury 100% of the interest payments made on GHO borrows,” the proposal states.

Gho has been available on the Ethereum blockchain’s Goerli testnet since February, where it has functioned without encountering any major bugs.

In a governance post in early June, developer Aave Companies proposed the V3 Ethereum Facilitator – to allow for gho lending against collateral deposits – and the FlashMinter Facilitator – a variant of flash loans, or loans that are issued against zero collateral.

These facilitators, which can be protocols or entities, have the ability to generate and burn GHO tokens up to a certain limit, enabling depositors to borrow GHO against their collateral deposited in Aave V3’s Ethereum mainnet pool.

Edited by Sheldon Reback.

#Aave #DAO #Vote #Gho #Stablecoin #Deployment #Ethereum

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