Aave DAO Floats Stablecoin Launch Proposal
The Aave DAO community is set to vote on launching the GHO stablecoin on Ethereum’s mainnet after testing on Goerli. Users can mint GHO tokens against collateral directly on the main chain, with GHO’s interest rate changeable through Aave DAO governance votes. The proposal aims to generate additional revenue for the DeFi lender and bootstrap competition among stablecoin borrowers on the lender’s platform.
The introduction of GHO on the Aave Protocol could make stablecoin borrowing more competitive and generate revenue for the Aave DAO by providing 100% of interest payments on GHO borrows. The proposal combines two previously approved Facilitators, allowing users to mint GHO tokens through two options: depositing collateral in the V3 Ethereum Mainnet Pool and borrowing GHO through Aave V3 Ethereum Pool, or lash minting GHO tokens without collateral using the FlashMinter Facilitator. The latter option requires users to repay the loan in a single transaction.
(With inputs from Shikha Singh)
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