Aave developers proposed to the community to launch a multilateral US dollar-pegged stablecoin GHO, native to the DeFi protocol ecosystem.

1/ Searching all GHOsts 👻

We have created an ARC for a new decentralized, collateral-backed stablecoin native to the Aave ecosystem, known as GHO.

Read more below and discuss your thoughts for a snapshot (coming soon)!👇https://t.co/P7tHl9LbBe

— Aave (@AaveAave) July 7, 2022

“How a decentralized stablecoin in the Ethereum GHO network will be created by users. As with all borrowings in the Aave protocol, collateral (at a certain rate) must be provided to be able to mint the GHO,” he said.

As collateral for the GHO, a “diversified set of crypto assets” supported by the protocol will be used. Users will continue to receive interest from the pledged tokens.

The team has a lot to say about interest rates, collateral levels, etc. He stated that all decisions regarding the GHO, including

“If approved, the implementation of the GHO will make stable money borrowing more competitive in the Aave protocol, provide more opportunities for users and generate additional income for the Aave DAO by channeling 100% interest payments on GHO loans into the DAO’s coffers,” he said. said in the statement.

The developers also offered to offer AAVE token holders a discount on the issuance of a stablecoin during staking. According to them, this encourages the growth of stkAAVE volumes, which will increase the security of the protocol.

It is assumed that the release and combustion of the GHO will be controlled by community approved “auxiliaries” (Facilitators) with a set emission limit.

“Stablecoin usage will grow as crypto assets become more integrated with a user base that has hitherto been less reliant on digital assets. The Aave team provides decentralized stablecoins, censorship-resistant fiat currency on the blockchain.”

If the proposal is approved by the community, the stablecoin will be moderated by experts from OpenZeppelin and PeckShield. Deployment of the GHO on the protocol and other networks will require a new vote.

According to DeFi Llama, Aave is in second place. TVL Among the $6.11 billion DeFi protocols, the Project is second only to MakerDAO ($7.68 billion), which manages the most popular decentralized stablecoin DAI with around 6.5 billion (CoinGecko) capital.

Recall that in July the MakerDAO platform separated Aave from the direct deposit module and deprived users of the protocol from the opportunity to borrow through DAI.

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