According to the governance website for Aave, a community request to introduce the local crypto-based stablecoin GHO was approved over the weekend with 99 percent of the vote.
As was previously reported, the plan aimed to enhance the capabilities of its lending platform. 501,000 aave (AAVE) tokens were used to vote in favour, while only 12 tokens were used to vote against. Votes from address 0x5B3bFfC0bcF8D4cAEC873fDcF719F60725767c98, which contributed 183,000 AAVE in favor of the proposal, were weighed most heavily.
According to data from DeFiLlama, Aave is decentralized finance (DeFi) platform that has locked over $6.8 billion worth of different cryptocurrencies on supported networks. Lending, borrowing, and other financial transactions that take place on a blockchain without the assistance of a third party are referred to as DeFi. Aave is a platform for lending and borrowing that enables users to profit from their committed tokens.
- Bitcoin bull run ‘getting interesting’ as BTC price hits 6-week high
- Why Bitcoin Could Trade Above $22,000 After Today’s FOMC Meeting
Soon, GHO will be made available to Aave users, enabling them to mint the token using the provided collaterals. In addition, users have the option of minting the token using a variety of crypto assets. Like other loan transactions on Aave, GHO holders will continue to receive interest on the provided collateral.
The token’s operation would be comparable to current algorithmic stablecoins, which produce precisely $1 worth of tokens for every $1 in cryptocurrency users contribute. In the case of GHO, a user needs to provide collateral (at a particular collateral ratio) to mint GHO. The proposal stated that the GHO protocol destroys a user’s GHO if they redeem a borrow position (or are liquidated).
According to the plan, the stablecoin’s interest payments would be routed to the protocol’s decentralized autonomous organization (DAO), bringing in money for the network as a whole while allowing the DAO to build up its treasury for future tools and goods.
The Aave neighbourhood will be in charge of making all GHO-related decisions.
Comment Template