Decentralized Finance (DeFi) protocol AAVE is submitting a proposal to governance to issue its decentralized stablecoin, GHO, which will be pegged to the US dollar.
Founder of AAVE Aave Companiesfor its decentralized stablecoin submitted a proposal to management. GHO named this stablecoin will be backed by collateral.
AAVE, GHO, stated that it will be supported by several cryptocurrencies of the community to choose. AAVE users provide collateral they will be able to use the assets to print the stablecoin. According to the statement, assets guarantee as long as they are stored as will generate income.
GHO will be a decentralized stablecoin distributed from the Ethereum mainnet. Users can print GHO at a certain rate. have to provide collateral will be. User-printed GHO refund when he will receive his guarantee, GHO will be burned by protocol.
Received from GHO producing users swap rate, It will be transferred to the AaveDAO treasury.
The offer also ‘consultants’ introduced a concept called If the proposal is approved, the consultants can confidently agree that the GHO to the production and to be burned It will help. AaveDAOfor GHO guarantee rates according to market conditions. will determine.
As a result, the GHO will be decentralized, collateralized with multiple asset types, interest income from the collateral deposited against the GHO, and managed by the Aave community.