Aave Community Approves Launch of Decentralized Stablecoin GHO

Aave Community Approves Launch of Decentralized Stablecoin GHO

The Aave community approved the launch of the decentralized GHO stablecoin

The Aave DeFi protocol community has approved the launch of the USD-pegged decentralized stablecoin GHO project in the ecosystem.

The protocol team submitted the project to the GHO in early July 2022. The instrument is an overcollateralized stablecoin — the same model used in MakerDAO's DAI.

The collateral will be Aave's “diversified set of cryptoassets”. At the same time, users will continue to receive interest on tokens blocked as collateral.

Interest payments on loans in GHO will be transferred to the Aave DAO treasury. The latter will take over the functions of managing the tool.

Aave's Head of Integrations, Mark Zeller, said that the timing of the launch of the stablecoin will depend on the results of audits. He emphasized that the development team “puts security ahead of deployment speed.”

The specialist also noted that the project does not plan to introduce revenue accounts in GHO.

Recall that in March 2022, the Aave team introduced the third version of the landing protocol.

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