<\/p>\n
Decentralized liquidity protocol Aave is primed to launch its native stablecoin GHO on Ethereum mainnet Saturday.<\/p>\n
The greenlit launch follows a community governance votes<\/a>, with a total of 424 addresses participating. Close to 100% of voters were in favor. <\/p>\n In an earlier<\/a> Statement expounding upon GHO’s development, Aave CEO and founder Stani Kulechov said stablecoins play a critical role in the crypto economy.<\/p>\n \u201cStablecoins have the potential to become the payment layer for Web3 because of their speed without the price volatility that has deterred consumers and merchants from using digital currencies,\u201d the company told Blockworks in a statement this week.<\/p>\n In a departure from popular stablecoins such as UDSC<\/a> and usdt<\/a>GHO has been designed as a completely decentralized, multi-collateral stablecoin with a fixed price oracle. <\/p>\n Its backing, as such, is completely transparent, with GHO holders able to discern exactly which assets are held in the stable token’s reserves. <\/p>\n The launch of GHO will introduce facilitators \u2014 entities or protocols with the ability to create and destroy the stablecoin. <\/p>\n During GHO’s initial launch, users would be able to mint the stablecoin by supplying collateral into the Aave V3 facilitator pool or through the FlashMinter facilitator.<\/p>\n Aave’s V3 facilitator pool will have an initial borrow rate of 1.5% and a bucket capacity \u2014 an upward limit on mints \u2014 of 100 million GHO. Aave stakers will be eligible for a discount of 30%.<\/p>\n The AaveDAO treasury will receive any interest accrued from GHO.<\/p>\n Flash minting will also be possible. Flash minting \u2014 similar to a flash loan, will enable users to mint GHO and repay in a single transaction.<\/p>\n \u201cThe FlashMinter would have a beneficial influence on GHO’s ability to maintain its peg because, among other benefits, it enables more efficient arbitrage,\u201d the protocol said in the proposal. <\/p>\n Any entity that hopes to become a facilitator in the future must be vetted by Aave governance and receive its own bucket capacity.<\/p>\n Get the day’s top crypto news and insights delivered to your email every evening. Subscribe to Blockworks’ free newsletter<\/a> now.<\/strong><\/p>\n Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from Blockworks Research’s Daily Debrief<\/a>,<\/strong><\/p>\n Can’t wait? Get our news the fastest way possible. Join us on Telegram<\/a> and follow us on google news<\/a>,<\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" Decentralized liquidity protocol Aave is primed to launch its native stablecoin GHO on Ethereum mainnet Saturday. The greenlit launch follows a community governance votes, with a total of 424 addresses participating. Close to 100% of voters were in favor. In an earlier Statement expounding upon GHO’s development, Aave CEO and founder Stani Kulechov said stablecoins […]<\/p>\n","protected":false},"author":2,"featured_media":122852,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-122851","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/122851","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=122851"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/122851\/revisions"}],"predecessor-version":[{"id":122853,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/122851\/revisions\/122853"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/122852"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=122851"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=122851"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=122851"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Minting GHO<\/h2>\n
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