Cryptocurrency and the giant of the DeFi world aave ecosystem now has its own native, decentralized, collateral-backed stablecoin, with its community accepting the proposal. to the GHO getting together.
The Aave community expressed their support for the promotion of the GHO stablecoin, with the majority of the community voting in favor.
Majority of Aave’s Crypto Community Voted Positive for GHO
Aave Companies, the central authority behind the Aave protocol, has proposed the launch of the decentralized, collateral-backed stablecoin GHO, which will be pegged to USD.
The “Green Light for GHO” proposal was put to vote between 28-31 July 2022. If the DAO approves the proposal, the GHO will be implemented in the Aave Protocol, allowing users to mint GHO in exchange for a set of guarantees.
The GHO stablecoin will be mintable against various crypto assets that have yet to be finalized by users. GHO lenders will continue to earn interest on the collateral provided, similar to borrowing transactions in the Aave protocol.
In addition, 100% of interest payments on GHO borrowings will benefit the community through AaveDAO. The initial interest rate will be determined over the next few weeks.
However, if the community does not accept this proposal, another proposal can be discussed.
So far, it looks like the community will support the proposal as the majority has voted in favor of the proposal. While the proposal received 99.96% of the votes in favor, 0.04% voted against the proposal. Moreover, the community seems enthusiastic about the stablecoin as no one has yet downvoted the proposal.
The success of DeFi lending protocol Aave’s GHO stablecoin will depend on community support. If there is no support, stablecoin NIRV as it may fail.
*Not investment advice.