The Aaave community members are poised to vote on whether to finally deploy gho ($GHO) on the Ethereum chain.

Aave is a lending and borrowing platform which recently introduced its own native algorithmic stablecoin, gho. An stablecoin is a type of cryptocurrency designed to maintain a stable value by utilizing algorithmic mechanisms. Unlike traditional cryptocurrencies, stablecoins aim to minimize price fluctuations and provide a stable store of value. In the case of gho, an algorithm determines its supply and demand ratio.

Gho will be pegged to the US dollar and its supply will be managed by the Aave DAO as well as its interest and risk parameters. Userds mint gho by using assets they have supplied on to the protocol as collateral. Gho holders will then continue earning interest on their assets. The stablecoin has been on the Goerli testnet and has so far encountered no problems.

In a governance post last June 6, Aave Companies released its proposal to deploy the stablecoin on Ethereum’s mainnet. With its deployment, Aave expects stablecoin borrowing on the Aave Protocol to become “more competitive and generate additional revenue for the Aave DAO by providing to the DAO treasury 100% of the interest payments made on GHO borrows.”

Go to Source to See Full Article
Author: Vince Dioquino

Did you like this?
Tip BTC Newswire with Cryptocurrency

• Bitcoin
• Bitcoin Cash
• Ethereum
• Litecoin
• Monero
• ZCash

Donate Bitcoin to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some bitcoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Bitcoin Cash to BTC Newswire

Scan the QR code or copy the address below into your wallet to send bitcoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Ethereum to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Ether:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Litecoin to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Litecoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Monero to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Monero:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate ZCash to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some ZCash:

Copy ZCash Address

[X] Click Here to Hide Donation Details