Aave Community Approves Launch of GHO, a USD-Pegged Decentralized Stablecoin

The community of the DeFi protocol Aave has approved the launch of the USD-pegged decentralized stablecoin GHO within the project’s ecosystem.

The community has given the greenlight 🟢 for GHO 👻 The next step is voting on the genesis parameters of GHO, look out for a proposal next week on the governance forum https://t.co/ba4oK50Wb8

— Aave (@AaveAave) July 31, 2022

The community has given the green light for GHO. The next step will be voting on the genesis parameters. Next week, watch for the proposal on the governance forum, the developers wrote.

During a three-day vote, participants of the Aave DAO cast over 500,000 AAVE tokens on Snapshot. The proposal received near-unanimous support.

Governance has spoken.

With 500k+ YAE votes and 12 NAE votes, the first out of 3 votes required to Launch @AaveAave $GHO has been approved.

The next step is voting on the genesis parameters of GHO, expect a proposal next week on the governance forum.

Congrats to all voters! pic.twitter.com/coYLS6EKXR

— Marc “Aavechan.lens” Zeller 👻 💜 (@lemiscate) July 31, 2022

The team of the protocol presented the GHO project in early July 2022. The instrument is an overcollateralized stablecoin — the same model is used by DAI from MakerDAO.

The collateral will be a “diversified basket of crypto assets” supported by Aave. Users will continue to earn interest on the tokens locked as collateral.

Interest payments on GHO loans will be paid to the Aave DAO treasury. The treasury will assume governance of the instrument.

Head of Integrations at Aave, Mark Zeller, said that the launch timeline for the stablecoin will depend on audit results. He stressed that the development team “places safety above the speed of deployment”.

depends mostly on audit reports and what they contain.

Aave always places safety above the speed of deployment

so far history proved it was not the worst strategy.

— Marc “Aavechan.lens” Zeller 👻 💜 (@lemiscate) July 31, 2022

The specialist also noted that the project does not plan to introduce interest-bearing accounts in GHO.

In March 2022, the Aave team presented the third version of the lending protocol.

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