Aave Votes to Support Proposal to Create GHO Stablecoin

The Aave DeFi protocol’s governing body, Aave DAO, decided to vote in favor of a proposal to launch the GHO stablecoin. The DAO’s support for the Snapshot vote, which concluded today at 6:00 a.m. EDT, was nearly unanimous. According to the voting website, the proposal was supported by DAO members holding 501,000 AAVE tokens. This equated to 99.99% of the votes cast during the three-day election. After the voting, a new Aave enhancement protocol will be used to implement the formation of the GHO stablecoin (AIP). After the stablecoin is created, management of it will be under the control of the DAO. Aave Users Can Submit Crypto Tokens Users of Aave who want to mint GHO can submit any of the crypto tokens accepted on the site as collateral. These deposits will not only serve as collateral but also generate a yield for Aave. Borrowers who take out GHO stablecoin loans will be charged interest according to the protocol. As with MakerDAO’s DAI, Aave intends for GHO to act as an overcollateralized stablecoin. This indicates that more GHO tokens will be created than the value of the deposited coin. Stani Kulechov, the founder of Aave, previously stated that the project would try to promote organic acceptance for GHO on Layer 2 of Ethereum. Aave will join a small group of MakerDAO and DeFi stablecoin issuers by launching a stablecoin. According to reports earlier in the month, Curve Finance, another DeFi primitive, may soon be added t...