Decentralized lending protocol AAVE announced the plan to launch its own dollar-pegged stablecoin, backed by user collateral. Currently, the proposal is up for discussion and would need to pass a governance vote to be implemented. Aave is Launching a New Stablecoin On July 7, AAVE proposed a new dollar-pegged stablecoin called GHO to the protocol’s DAO. The proposed stablecoin is similar to DAI of the MakerDAO protocol, the most popular stablecoin on the Ethereum blockchain. “GHO would be backed by a diversified set of crypto-assets chosen at the users’ discretion, while borrowers continue earning interest on their underlying collateral,” the governance proposal reads. A DAO, made up of all Aave token holders, will vote on the proposal after a feedback period. “If approved, the introduction of GHO would make stablecoin borrowing on the Aave Protocol more competitive, provide more optionality for stablecoin users and generate additional revenue for the Aave DAO by sending 100% of interest payments on GHO borrows to the DAO,” it added. 1/ Calling all GHOsts 👻 We have created an ARC for a new decentralized, collateral-backed stablecoin, native to the Aave ecosystem, known as GHO. Read more below and discuss your thoughts for the snapshot (coming soon)!👇https://t.co/P7tHl9LbBe — Aave (@AaveAave) July 7, 2022 Aave currently has a total value locked of $6.6 billion, according to data from DeFi Llama. Its native token, AAVE, is als...
