Aave Protocol Enables Decentralized GHO Stablecoin on the Ethereum main network after receiving regulatory decisions.
This movement is the result of a down action.voteBy the decentralized autonomous organization Aave earlier this week, GHO’s stablecoin was first launched on the Goerli test network in February 2023 and will be available to users of Aave version 3 on Ethereum.
The development is in line with an industry trend that sees DeFi platforms launch their own stablecoins, with Curve Finance launching a stablecoin in May.
Stablecoins are assets designed to mitigate market volatility, pegged to a portfolio of assets, typically fiat currencies or other cryptocurrencies.
How does GHO work?
GHO will be backed by crypto assets such as ether (ETH). The Aave protocol will be issued as a loan with overcollateralized This method requires users to deposit their crypto assets as collateral. whose value exceeds the amount they will borrow
GHO’s stablecoin relies on a smart contract system called Ethereum Facilitator that allows users to deposit collateral and lend GHO, all collateral stored in the Ethereum mainnet pool.
A key feature of the GHO stablecoin is that it redirects all interest accrued on loans directly to Aave DAO’s treasury. risk
refer : LINK
The post Aave Protocol Enables Stablecoin GHO on Ethereum Mainnet appeared first on Bitcoin Addict.