The team behind the DeFi platform Aave, Aave Companies, launched the GHO stablecoin on the Ethereum Goerli testnet.
It’s GHO time! @GHOAave is now on Ethereum’s Goerli Testnet!
👻 https://t.co/cM58b6qSBa pic.twitter.com/xueGERoqnw
— Aave (@AaveAave) February 9, 2023
The release of the new asset on the mainnet is expected to be approved soon by the DAO.
The development team introduced the GHO project in early July 2022. The instrument is an over-collateralized stablecoin — a model similar to MakerDAO’s DAI. This means that to issue GHO, users must provide collateral exceeding the value of the target stablecoins.
The collateral assets will generate yield. Interest proceeds from borrowers of the stablecoin will go to the treasury of the DAO behind the project’s development. The latter will also control the set of coordinators (facilitators) who can mint and burn GHO.
According to DeFi Llama, Aave ranks second by TVL among DeFi protocols, with a value of $7.26 billion. The project trails only the liquid staking service Lido ($8.46 billion).
Earlier, ForkLog reported that the Curve Finance is preparing to launch its own stablecoin.