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Aave DAO, the governing body of the Aave DeFi protocol, voted in favor of Aave Companies’ proposal to introduce GHO into the DAO in a poll that ended today.
After a 3-day voting process, the GHO stablecoin proposal was supported by 99.99% of all voters (501,000 AAVE token holders).
GHO will be managed by Aave Governance through AIP and 100% of interest payments on GHO borrowing will also go to AaveDAO. However, he will support the Aave Companies at his cost, and it is up to AaveDAO to decide whether or not to work on GHO.
Following community approval, the GHO stablecoin will launch on the Aave protocol. Aave protocol users can create her GHO stablecoin for a wide range of crypto assets. Additionally, those who borrow GHO continue to earn interest on the underlying collateral provided.
Aave users are free to deposit any cryptocurrency accepted by the platform as collateral for issuing GHO stablecoins. In addition to deposits acting as collateral for issuing GHO stablecoins, deposits also generate yield for Aave Borrowers who borrow GHO stablecoin loans.
Similar to MakerDAO’s DAI, Aave wants GHO to be an over-collateralized stablecoin. This means more GHO tokens will be created compared to the value of the deposited cryptocurrency.
Earlier, Aave founder Stani Krechov said that he would try to foster organic acceptance of GHOstablecoin on Ethereum Layer 2.
By approving the proposal to launch GHO, Aave is basically on the road to participating in the launch of stablecoins like MakerDAO and other DeFi stablecoin issuers. Another protocol that has announced its intention to launch a stablecoin is Curve Finance.
