aave Aave DAO, the governing body of the DeFi protocol, decided to support the proposal to create a stablecoin called GHO.
99.99% of Altcoin Community Voted in Favor of Stablecoin
Snapshot voting, which ended at 13:00 today morning, was accepted almost unanimously by the DAO.
Data from the voting page shows that DAO members with a total of 501,000 AAVE tokens are in favor of the proposal. This corresponds to 99.99% of the total votes cast during the three days of voting.
With the vote passed, the next step will be to implement the creation of the GHO stablecoin via a new Aave improvement protocol (AIP). The DAO will be responsible for the management of the stablecoin once it is created.
Aave users who want to mint GHO, accepted as collateral on the platform from cryptocurrencies They can do this by supplying anyone. Apart from acting as collateral, these deposits will also generate returns in Aave. The protocol will charge interest on GHO stablecoin loans received by borrowers.
Aave plans for the GHO to function as an over-collateralized stablecoin similar to MakerDAO’s DAI token.
This means that the value of the deposited crypto-asset will exceed the amount of GHO tokens to be mined.
Stani Kulechov, the founder of Aave, has previously said that the project will seek to achieve sustainable adoption of GHO in Ethereum’s Layer 2.
Aave is preparing to join the elite group of DeFi stablecoin issuers alongside MakerDAO by creating a stablecoin. That list may soon include Curve Finance, another DeFi pioneer, according to reports earlier this month.
*Not investment advice.