DeFi giant 'Away' announces plans to launch own stablecoin 'GHO'
DeFi and GHO Stablecoin
Modified Date:- Published Date:-Categories: Cryptocurrency
DeFi giant 'Away' announces plans to launch own stablecoin 'GHO'
DeFi lending platform Aave plans to launch its own stablecoin, GHO, issued on the Ethereum network, the company announced in a blog post. The GHO will be a US dollar-denominated stablecoin, more collateralized against their collateral by a diverse set of cryptocurrencies of choice by users. The proposal was submitted to Awe DAO (Decentralized Autonomous Organization) last week.
Aave DAO Treasury users will have to make interest payments by borrowing the stablecoin against their crypto funds and over-collateralizing it just like any other Aave loan. As per the proposal, all interest payments generated by GHO miners will be transferred to the Aave DAO Treasury. Aave, one of the largest DeFi lending platforms, currently boasts of US$6.76 billion in Total Value Locked (TVL).
The idea of launching a crypto-backed stablecoin instead of launching algorithmic stablecoins is one of the safer approaches taken up by other cryptocurrency platforms. One protocol that has decided to support its algorithmic stablecoin is the Tron Network, which over-collateralized its USDD stablecoin to prevent collapse, such as TeraUSD.
DeFi Platform, GHO Miners, Cryptocurrencies, Stablecoin, Crypto Backed Stablecoin, TeraUSD, DAO Treasury, Cryptocurrency, USD Stablecoin, Tron Network