Aave reveals plans about launching of the pegged stablecoin known as GHO, this is also the part of the effort for expanding revenue also making borrowing about the DeFi protocol. This is highly competitive. Here, GHO will get backed by the complete range of cryptocurrency assets that is posted as the collateral. Here, proposal to the forum of Aave’s governance said the users will mint the stablecoin with assets that they offered as the collateral. The similar kind of the assets will always continue earning the interest even when used as a collateral.
Aave – Prominent and renowned DeFi lender
Aave known as the prominent & renown decentralize finance borrowing & lending protocol. This boast $5.59 billion and above in total locked value. Here, sum of assets that are well manage by protocol. This figure is mainly down for more than 50% when debacle of Terra blockchain started to unravel. Moreover, GHO will become the decentralized stablecoin available on ETH or on mainnet of Ethereum. It will also get over collateralized through the assets which always continue to earn some great yield.
GHO – Aave Ecosystem
GHO basically known to be native for this Aave ecosystem. Here, the users that also intend to borrow stablecoin should also supply collateral at some specific ratio. When the user will simply repay the amount of debt or will get liquidate, so GHO tokens of user will get burn by the protocol.
On the other hand, AAVE where utility token & governance of Aave protocol has also surged on news and enhanced from 11% to $70. This token has also slumped more above 65% and it is 90% from all-time high level of $661.
Here, GHO will also get secure by assets available on Ethereum market. So key vision for the GHO is about pursuing the organic adoption through L2s for solving real life opportunities of payment.