According to the results of the voting of the Aave community, a GHO stablecoin pegged to the US dollar will be launched. Approved by those who voted for the project and are ready to provide support on the network, but there are people who point out the risks and similarities with the collapsed Luna.
According to the plans of Aave DAO, GHO will be a stablecoin on the Ethereum network, which has excess collateral. A diversified portfolio of crypto assets will be used as collateral. Also, users will be able to receive interest for the tokens that they have pledged. At the same time, the interest rate will be regulated directly by the DAO.
As a decentralized stablecoin on the Ethereum Mainnet, GHO will be created by users (or borrowers). As with all borrowing on the Aave Protocol, a user must supply collateral (at a specific collateral ratio) to be able to mint GHO. Correspondingly, when a user repays a borrow position (or is liquidated), the GHO protocol burns that user’s GHO. All the interest payments accrued by minters of GHO would be directly transferred to the Aave DAO treasury; rather than the standard reserve factor collected when users borrow other assets.
Aave is a decentralized protocol. Save is used so that users can take out a loan or, conversely, lend without the participation of a centralized intermediary in the transaction.
The vote on the launch lasted three days and 99.9% of the participants voted for the launch of the stablecoin.
But there are also those who doubt the new stablecoin. In response to the announcement from Aave, users began to compare its mechanism of operation with the recently failed Luna.
Also, users began to actively criticize the mechanism of working with the interest rate presented by Aave.
Currently there is an active discussion on the new GHO stablecoin project on the web, the development team is working on the project and answering users’ questions in the blog, and we are waiting for new details to share them with you as soon as possible.