Aave Community Approves Launch Of Decentralized Stablecoin GHO

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

“The community has given the green light to the GHO. The next step is to vote on the parameters of the genesis. Stay tuned for a proposal on the governance forum next week,” the developers wrote.

During a three-day vote, members of the decentralized organization Aave DAO contributed over 500,000 AAVE tokens to the Snapshot platform. The proposal received almost unanimous support. 

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

The collateral will be a “diversified set of crypto assets” backed by Aave. 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 treasury of Aave DAO. The latter will take over the tool management functions.

Mark Zeller, head of integrations at Aave, said that the timing of the launch of the stablecoin would 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.