Key facts:
One of the goals is to generate more revenue for the AaveDAO treasury.
Security audits are expected in the coming days, if the proposal is approved.
Decentralized finance (DeFi) platform Aave is proposing to launch its own stablecoin. It is GHO, a token of the Ethereum network backed by various collateral assets and that will maintain parity in its price with that of the US dollar.
The goal is to make “stablecoin lending on the Aave protocol more competitive”indicates the organization. They explain that it would “provide more choice for stablecoin users and generate additional revenue for the DAO by sending them 100% of payments and interest on GHO loans.”
GHO, if approved the proposal made by the organization itself, will work in much the same way as stablecoin ICD. A user will provide collateral to issue a certain amount of GHO which he will receive as a loan. When you pay it off, the borrowed GHOs will be burned and the interest will be transferred to the AaveDAO treasury.
The collateral could be other cryptocurrencies and tokens, but also certain real-world assets (real estate or banking financial products, for example). That is a characteristic that it would also share with DAI, which now accepts this type of collateral, as CriptoNoticias has detailed.
As stated in the proposal, posted on the Aave governance forum, discounts and benefits are foreseen in the issuance of GHO for the holders of the tokens of the DeFi protocol. In this way, the growth of the entire ecosystem as a whole would be stimulated.
Should the voting community decide to approve the creation of GHO, AaveDAO promises that several security audits will be carried out in the coming weeks by the specialized companies OpenZeppelin and PeckShield.