{"id":1007,"date":"2022-07-16T16:38:29","date_gmt":"2022-07-16T16:38:29","guid":{"rendered":"https:\/\/grandpascrypto.com\/?p=1007"},"modified":"2022-07-16T16:38:30","modified_gmt":"2022-07-16T16:38:30","slug":"aave-launches-proposal-for-new-gho-stablecoin","status":"publish","type":"post","link":"https:\/\/grandpascrypto.com\/aave-launches-proposal-for-new-gho-stablecoin\/","title":{"rendered":"Aave Launches Proposal for New \u2018GHO\u2019 Stablecoin"},"content":{"rendered":"\n<p><strong><em>tl;dr Summary: <\/em><\/strong><em>DeFi platform Aave has announced plans to release a decentralized, collateral-backed stablecoin. The coin will be called GHO, and has been labeled \u201cthe new $DAI.\u201d The $AAVE token has surged at the news.<\/em><\/p>\n\n\n\n<p>Aave is crypto\u2019s second biggest<a href=\"https:\/\/www.youtube.com\/watch?v=17QRFlml4pA\"> DeFi<\/a> protocol, holding over $5.5 billion total value locked (TVL) <a href=\"https:\/\/defillama.com\/\">according to DeFi llama<\/a>. The protocol was initially released on Ethereum in 2017, but is now available across multiple<a href=\"https:\/\/academy.binance.com\/en\/articles\/what-is-layer-1-in-blockchain\"> layer-1s<\/a> and<a href=\"https:\/\/www.youtube.com\/watch?v=9pJjtEeq-N4\"> layer-2s<\/a> alike. The protocol is owned and governed by the Aave DAO, a collection of $AAVE token holders that collectively vote on proposals to determine the protocol\u2019s future.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">1\/ Calling all GHOsts \ud83d\udc7b\u00a0<br><br>We have created an ARC for a new decentralized, collateral-backed stablecoin, native to the Aave ecosystem, known as GHO.<br><br>Read more below and discuss your thoughts for the snapshot (coming soon)!\ud83d\udc47<a href=\"https:\/\/t.co\/P7tHl9LbBe\">https:\/\/t.co\/P7tHl9LbBe<\/a><\/p>&mdash; Aave (@AaveAave) <a href=\"https:\/\/twitter.com\/AaveAave\/status\/1545057714815901696?ref_src=twsrc%5Etfw\">July 7, 2022<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>This week,<a href=\"https:\/\/governance.aave.com\/t\/introducing-gho\/8730\"> AAVE announced the proposal<\/a> to create GHO, a \u201cdecentralised, collateral-backed stablecoin\u201d pegged to the US dollar. Following the<a href=\"https:\/\/grandpascrypto.com\/bloodbath-in-the-market-as-ust-and-luna-reached-all-time-lows\/\"> catastrophic demise of TerraUSD<\/a>, just the mention of a decentralised stablecoin is enough to strike fear into many crypto investors, however Aave have been quick to emphasize the intrinsic differences between $UST and GHO. The coin has been colloquially referred to as \u201cthe new $DAI.\u201d<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">2\/ GHO will be:<br>\ud83c\udf0d Decentralized<br>\ud83d\udcaa Over-collateralized by assets that continue to earn yield<br>\u2728\u00a0Backed by multiple types of collateral available on the Aave Protocol<br>\u2696\ufe0f Governed by the Aave community<br><br>With community support, GHO can extend the capabilities of the Aave ecosystem!<\/p>&mdash; Aave (@AaveAave) <a href=\"https:\/\/twitter.com\/AaveAave\/status\/1545057716674080769?ref_src=twsrc%5Etfw\">July 7, 2022<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>GHO will be a fully collateralized stablecoin, with protocol users able to generate GHO after supplying crypto assets to Aave as collateral. These assets are locked up in<a href=\"https:\/\/www.youtube.com\/watch?v=pyaIppMhuic\"> smart contracts<\/a>, and will earn interest similar to all assets deposited to Aave. A user can reclaim their crypto at any time by returning their GHO to the protocol to be burnt. If at any point the dollar value of a user\u2019s collateral falls close to the dollar value of GHO borrowed, they will be liquidated. In the case of liquidation, the user\u2019s collateral is sold off to ensure their deposit does not fall beneath the value of their loan.<\/p>\n\n\n\n<p>The exact list of assets that can be used as collateral is yet to be determined, however Aave state that they will support a \u201cdiversified list of crypto-assets.\u201d The borrow interest rate for GHO will be stable, although the Aave DAO will be able to adapt the rate intermittently based on market conditions. Stakers of the protocol\u2019s governance token, $AAVE, will be able to mint and borrow GHO at a discounted rate.<\/p>\n\n\n\n<p>All interest accrued from GHO lending will be returned to the Aave DAO. Aave states these funds will be used to innovate and support contributors to the ecosystem, as well as bolster the treasury during market downturns. Although GHO will initially only be available on Ethereum, Aave have stated that given the low fees and growing adoption of layer-twos, there is \u201can opportunity for GHO to have widespread usage\u201d on these platforms if the coin is a success on Ethereum.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">If you want to go far, gho together \ud83d\udc7b<\/p>&mdash; stani.lens (\ud83c\udf3f,\ud83d\udc7b) (@StaniKulechov) <a href=\"https:\/\/twitter.com\/StaniKulechov\/status\/1545058269248385025?ref_src=twsrc%5Etfw\">July 7, 2022<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Aave founder Stani Kulechov recognised the potential of GHO on layer-2s on twitter, stating,<\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p><em>\u201cWhile GHO would be secured by the assets on the Ethereum market, the main vision for GHO is to pursue organic adoption via L2s to solve real life payment opportunities across the internet and on-ground.\u201d<\/em><\/p><\/blockquote><\/figure>\n\n\n\n<p>He added that the GHO development is already completed and undergoing external audit, before concluding,<\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p><em>\u201cThe<\/em><a href=\"https:\/\/twitter.com\/AaveAave\"><em> @AaveAave<\/em><\/a><em> team has committed to ensure the Aave ecosystem can grow, innovate and lead the way to bring sound, fair and transparent finance accessible across globally.\u201d<\/em><\/p><\/blockquote><\/figure>\n\n\n\n<p>Aave described the move on twitter as \u201cyet another exciting leap forward for the Aave Protocol,\u201d and it seems like investors agree, with $AAVE up over 20% on the weekly chart. Community voting on the proposal has already begun, and with mostly positive sentiment seen in governance forums, it seems like only a matter of time until GHO goes live!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>DeFi platform Aave has announced plans to release a decentralized, collateral-backed stablecoin. The coin will be called GHO, and has been labeled \u201cthe new $DAI.\u201d The $AAVE token has surged at the news.<\/p>\n","protected":false},"author":2,"featured_media":1004,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[54],"tags":[1589,1588,314,111,1587,1590,235,236,204],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v18.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/grandpascrypto.com\/aave-launches-proposal-for-new-gho-stablecoin\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Aave Launches Proposal for New \u2018GHO\u2019 Stablecoin - grandpascrypto.com\" \/>\n<meta property=\"og:description\" content=\"DeFi platform Aave has announced plans to release a decentralized, collateral-backed stablecoin. 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