Aave’s GHO Stablecoin Nears Elusive Dollar Peg
GHO, a stablecoin in decentralized finance, has seen its value rise to $0.985 for the first time since August. While these gains don’t fix GHO’s reputation as a not-so-stablecoin, they set the token close to the levels expected from an asset worth a dollar, not $0.96. The higher price price matches the target set by TokenBrice, a hands-on DeFi engineer who took over the liquidity committee Aave to restore GHO’s dollar peg. However, restoring GHO on peg is challenging due to its lack of a redemption mechanism and interest rate control by Aave governance, which may negatively impact borrowers. The stablecoin’s unstable nature makes it difficult to maintain a lower bound for its assets.
(With inputs from Shikha Singh)
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