Aave passes decentralised stablecoin proposal

Aave passes decentralised stablecoin proposal

A proposal for the Aave DAO to introduce a decentralized, multi-collateral stablecoin called GHO, has been approved following a community vote, Aave Company has announced.

According to the platform, the USD-pegged stablecoin has been green-lit by the DAO community with overwhelming support of 99.99%.

Community has given the green light to GHO The next step is to vote on GHO origin parameters, proposed next week on the admin forum https://t.co/ba4oK50Wb8

 Aave (@AaveAave) July 31, 2022

Aave’s GHO stablecoin

The GHO proposal was launched on July 7, with a governance vote required to allow the decentralized stablecoin to launch on the Aave protocol.

In the app, Aave Companies said the algorithmic stablecoin will allow community participants to mint tokens based on their collateral. The GHO was thus envisioned to be backed by user-selected assets and would see borrowers continue to earn interest on anything they put up as assets. Mortgage.

When a borrower returns their collateral, the Aave protocol records the GHO associated with that account.

“If approved, the introduction of GHO will make stablecoin borrowing on the Aave protocol more competitive, provide more choices for stablecoin users, and generate more revenue for the Aave DAO by depositing 100 % interest payments on GHO loans to DAOs”, proposed by Aave Company.

Governance voting began on July 28 after the snapshot a day earlier and ended on July 31 with 99.99% of the 1,793 total votes in favor of the proposal. The approval now places stablecoin GHO in its next phase, which will involve a vote on the token’s origin parameters.

similar proposal is expected next week and will be posted on the Aave DAO governance forum.

Leave a Reply

Your email address will not be published.