The Aave Companies team behind the development of the Aave DeFi platform has launched GHO stablecoin on the Ethereum testnet Goerli.
It’s GHO time! @GHOAave is now on Ethereum’s Goerli Testnet!
https://t.co/cM58b6qSBa pic.twitter.com/xueGERoqnw
— Aave (@AaveAave) February 9, 2023
The release of a new asset on the main network should soon be approved by the DAO.
The development team presented the GHO project in early July 2022. The instrument is an overcollateralized stablecoin, similar to the model used in DAI by MakerDAO. This means that in order to issue GHO, users must provide collateral that exceeds the value of the targeted stablecoins.
Assets in collateral will generate returns. Interest income from borrowers of the stablecoin will go to the treasury of the DAO behind the development of the project. The latter will also oversee a set of facilitators who can release and burn GHOs.
According to DeFi LlamaAave ranks second in TVL among DeFi protocols with $7.26 billion. The project is second only to the liquid staking service Lido ($8.46 billion).
bitcoinlinux previously reported that decentralized exchange Curve Finance is preparing to release its own stablecoin.
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