E Amazings
  • Home
  • Automotive
  • Business
  • CBD
  • Crypto
  • Education
  • Entertainment
  • Fashion
  • Finance
  • Health
  • Home Improvement
  • Law \ Legal
  • News
  • Shopping
  • Sports
  • Technology
  • Travel
  • Need Help?

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

What's Hot

What Closing Costs Do Home Buyers Have?

February 25, 2023

What Is Realtek HD Audio Manager

February 2, 2023

A Basic Guide To Cell Tower Leasing

February 2, 2023
Facebook Twitter Instagram
E Amazings
  • Home
  • Automotive
  • Business
  • CBD
  • Crypto
  • Education
  • Entertainment
  • Fashion
  • Finance
  • Health
  • Home Improvement
  • Law \ Legal
  • News
  • Shopping
  • Sports
  • Technology
  • Travel
  • Need Help?
Facebook Twitter Instagram
E Amazings
You are at:Home»Crypto»Aave Proposes to Launch an USD-Pegged Stablecoin Called GHO
Crypto

Aave Proposes to Launch an USD-Pegged Stablecoin Called GHO

By July 8, 2022No Comments3 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Share
Facebook Twitter Pinterest WhatsApp Email

[ad_1]

DeFi protocol Aave proposed to its community to create a USD-pegged stablecoin, GHO. The project would allow users to mint GHO against their supplied collaterals, with all the interest payments being sent to AaveDAO.

Backed by Multiple Types of Collaterals

Similar to the MakerDAO-issued stablecoin Dai, GHO would be minted based on users supplying a specific ratio of collaterals, according to the official blog post. When the borrowed amount is repaid, the protocol would burn the users’ GHO accordingly. Moreover, the collateral assets deposited on Aave would continue to generate yield while also being used as collateral.

According to Aave, a GHO aToken and GHO Debt Token will be deployed to the protocol, following the same mechanisms as any other asset listed on Aave. This integration is designed to facilitate its growth within the Ethereum blockchain.

In the wake of the fall of Terra’s algorithmic stablecoin, UST, the industry has been under pressure as the uncertainty regarding the underlying collateral of leading projects continues to rise. As such, ceiling caps on lending and borrowing are expected to be imposed as reducing risk is crucial to the project. During a market downturn, the protocol would implement the “E-Mode” as a stabilizing factor amid high market volatility.

GHO demand increases as the price of collateral contracts and users borrow more GHO using other non-volatile collateral assets to repay their positions. This would increase the amount of GHO that enters the market and reduce demand. Stablecoin holders can also access GHO with a rate close to 1:1 with zero slippage thanks to E-Mode.

Community Approval

Additionally, the interest rate for borrowing and lending GHO would be determined by the Aave community in the future, with a stable rate being adapted in accordance with market conditions. Aave founder Stani Kulechov shared his view on the Discount Strategy aiming to stimulate use cases across DeFi protocols.

Aave Protocol users can supply various collateral assets to earn yield while minting GHO. The interest rate strategies would be governed by the Aave DAO, hence offering a sense of predictability on interest rates.

— stani.lens (🌿,👻) (@StaniKulechov) July 7, 2022

The founder positioned the newly conceived product as “solving real-life payment opportunities across the internet and on-ground.” Moving forward with this stablecoin project requires further governance approval on Snapshot from AaveDAO. If the community approves such a proposal, the first audit – conducted by OpenZeppelin – will be scheduled for July 11th.

SPECIAL OFFER (Sponsored)

Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.



[ad_2]

Source link

Related Posts

Report With an Eye on Mutual Settlements with China, Russia To Launch CBDC Early Next Year: Report

By September 28, 2022

China Cracks Down a $5.6 Billion Crypto Money-Laundering Scheme (Report)

By September 28, 2022

Binance Launches Training Program For Law Enforcement Agencies

By September 28, 2022

FTX US President Brett Harrison Steps Down

By September 27, 2022
Add A Comment

Comments are closed.

Our Picks

What Closing Costs Do Home Buyers Have?

By Corbin BowenFebruary 25, 2023

What Is Realtek HD Audio Manager

By Corbin BowenFebruary 2, 2023

A Basic Guide To Cell Tower Leasing

By Corbin BowenFebruary 2, 2023
Recent Posts
  • What Closing Costs Do Home Buyers Have? February 25, 2023
  • What Is Realtek HD Audio Manager February 2, 2023
  • A Basic Guide To Cell Tower Leasing February 2, 2023
  • Air Duct Repair 101: Everything You Need To Know February 2, 2023
  • Rashid Khan: A Nightmare For Every Batsmen January 18, 2023
  • Advantage LIC? How Budget Insurance Amendment Bill may benefit the PSU insurance giant January 5, 2023
  • The Flight Of The Dremel January 5, 2023
Archives
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • September 2021
Facebook Twitter Instagram Pinterest TikTok
© 2022 E Amazings - All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.