The DeFi protocol Aave activated the decentralized stablecoin GHO on the Ethereum mainnet. The deployment received 100% support from the community.
In February launched the coin on the Goerli testnet.
“More than two years ago, the Aave community recognised the need for a decentralized overcollateralized stablecoin that would expand users’ capabilities and serve as a payment layer,” the team said.
With activation on the Ethereum mainnet, it is now possible to borrow GHO collateralized in cryptocurrencies. The coin is governed by a DAO.
The stablecoin architecture relies on the Ethereum Facilitator smart-contract system. The coin issuance is carried out by community-approved intermediaries — “facilitators”. The first of them was the Aave v3 market on Ethereum. Version 3 of the protocol comes with enhanced risk-control features, the developers noted.
“GHO can be issued against any assets available as collateral on Aave V3 on Ethereum. This ensures that the stablecoin is multi-collateral, allowing users to mint it with any mix of funds they supply to the protocol,” they added.
The team emphasised that collateral for minting the protocol continues to generate income for users. Another feature of the stablecoin is that the interest on loans in it fully accrues to the Aave DAO treasury.
According to the statement, prior to the Ethereum deployment the solution underwent audits by Open Zeppelin, SigmaPrime, ABDK and Certora.
Earlier in March, the Aave team began the first phase of the ‘rescue mission’ for tokens lost due to erroneous smart-contract transfers.