Aave passes decentralised stablecoin proposal

A proposal to have Aave DAO introduce a decentralized, multi-collateralized stablecoin called GHO was passed following a community vote, with Aave Companies announced.

According to the platform, the USD-pegged stablecoin received the green light with an overwhelming 99.99% support from the DAO community.

Aave’s GHO Stablecoin

The GHO proposal was announced on July 7th this year and required a governance vote to enable the launch of a decentralized stablecoin on the Aave protocol.

In a request, Aave Companies said the algorithmic stablecoin would allow community participants to create tokens against collateral. It was therefore envisioned that the GHO would be backed by user-selected assets and would continue to earn interest on what the borrower pledged as collateral.

When a borrower repays against collateral, the Aave protocol burns the GHO associated with that account.

If approved, the introduction of GHO will make stablecoin borrowing on the Aave protocol more competitive, provide more options for stablecoin users, and offer 100% interest payments on GHO borrowing. is sent to DAO, which brings additional revenue to Aave DAO.Urb Companies suggestion Provided.

Governance voting began on July 28th and ended on July 31st, after the previous day’s snapshot, with 99.99% of 1,793 votes in favor of the proposal. Approval sets the GHO stablecoin to the next step. This includes voting on the token’s genesis parameters.

The same proposal is expected later this week and will be posted on the Aave DAO Governance Forum.

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