DeFi Giant Aave Unveils Plans for New Decentralized Stablecoin Based on Ethereum (ETH)

The popular Decentralized Finance (DeFi) protocol is preparing to launch its own US dollar peg stablecoin supported by the community.

In the new announcement, the lending and borrowing platform Aave (AAVE) To tell Build a new stablecoin known as GHO on Ethereum (ETH), the leading smart contract platform.

The Decentralized Autonomous Organization (DAO) for crypto projects is responsible for token approval and management.

GHO uses a growth strategy that highlights the use cases of a growing mainstream audience while providing a comprehensive level of security and decentralization to native cryptocurrency users.

GHO is over-collateralized by continuously earning yield-backed assets backed by multiple types of collateral available in the Aave protocol. [and] It is governed by the Aave community. ”

The stablecoin borrowing process reflects Aave’s traditional model of providing sufficient collateral for users to create new GHOs. Later, repaid or liquidated positions will result in tokens being burned and the interest collected will be sent to Aave DAO’s Treasury Department.

Aave says he is stepping into the world of stablecoin. Because Stablecoin provides fast, convenient and secure remittance of fiat money over the blockchain.

“Stablecoin is [cryptocurrency] Space currently stands with a market capitalization of approximately $ 150 billion. Stablecoins provides a fast, efficient, borderless and stable way to transfer value over the blockchain.

Distributed Stablecoin adds transparency and censorship resistance to this list of benefits, which is an integral part of Web3.

The use of Stablecoin will continue to grow as crypto assets are further integrated with the non-crypto native user base. Decentralized Stablecoin provides a censorship-resistant fiat-denominated currency on the blockchain. ”

At the time of writing, Aave was up 12.55% on the day and trading at $ 71.96.

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