One of the largest companies in the decentralized finance market, Aave, has unveiled plans to launch GHO, its own overcollateralized stablecoin.
The release of the coin will begin if regulators approve the company’s decentralized autonomous organization (DAO). The company made the announcement on Twitter. Aave is an automated DeFi protocol that allows customers to lend and buy digital assets without the need to seek approval from a centralized intermediary.
“We have created ARC for a new decentralized collateralized stablecoin native to the Aave ecosystem known as GHO,” Aave said in the announcement.
GHO will be an Ethereum-based decentralized stablecoin pegged to the US dollar and backed by multiple assets of the user’s choice. To get GHO, you need to issue a secured stablecoin. However, the list of collateralized assets supported and the collateral ratio have not been detailed yet:
“GHO will be backed by a diversified set of cryptoassets, selected at the discretion of users, while borrowers will continue to earn interest on their underlying collateral.”
100% of payments accrued by GHO minters will be directly transferred to the AaveDAO account, the developers promise. That is, instead of the standard reserve ratio charged when users borrow other assets.
It was previously reported that Aave CEO Stani Kulechov was banned from Twitter after he joked that he had become CEO of the social network and plans to add support for Ether (ETH).
Source: Bits
I’m James Harper, a highly experienced and accomplished news writer for World Stock Market. I have been writing in the Politics section of the website for over five years, providing readers with up-to-date and insightful information about current events in politics. My work is widely read and respected by many industry professionals as well as laymen.
