Aave nears launch of GHO stablecoin on Ethereum.
The developer of Aave’s gho (GHO) stablecoin has proposed two key features that would benefit holders while maintaining the token’s stability, bringing it closer to a launch on the Ethereum mainnet.
Gho has been available on the Goerli testnet of the Ethereum blockchain since February, and has operated without any significant bugs.
The Aave Companies developer proposed the V3 Ethereum Facilitator, which would allow for gho lending against collateral deposits, as well as the FlashMinter Facilitator, a variant of flash loans that are issued without collateral. These facilitators, which can be entities or protocols, 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.
Both facilitators were approved in outline earlier, and a voting schedule for the more detailed proposals, which are still in the discussion phase, has yet to be set.
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The FlashMinter Facilitator will enable users to borrow GHO and repay it in a single transaction, with an initial capacity of 2 million GHO on zero fees.
Gho was first proposed in June of last year as a decentralized stablecoin backed by a basket of cryptocurrencies chosen at the discretion of Aave users, while borrowers would continue earning interest on their underlying collateral. According to the proposals, the token is expected to generate additional revenue for the Aave decentralized autonomous organization by sending 100% of interest payments on GHO borrows to the DAO. It will initially be issued on Ethereum, but is expected to be issued on other blockchains based on community demand and voting.
Edited by Sheldon Reback.