GHO is a decentralized over-collateralized stablecoin that was approved last year by the protocol's governance, Aave DAO.
Aave, one of the leading decentralized protocols in the Ethereum DeFi ecosystem, has successfully launched its GHO stablecoin on the Goerli testnet.
On Twitter, the protocol developers announced the launch of the stablecoin on the Ethereum testnet, indicating that its code is already public in the GitHub repositories and that it has been audited by several of the most well-known companies in the crypto industry, including OpenZeppelin, SigmaPrime and ABDK Consulting.
The deployment of the GHO stablecoin occurred successfully on Thursday morning, according to the protocol developers.
Aave informed the community about the creation of its own native stablecoin last year, after the protocol's governance almost unanimously approved the issuance of GHO through a vote on the Aave DAO.
This new stablecoin is designed to strengthen Aave's decentralized ecosystem, in order to boost its expansion and growth by providing new utilities to its users.
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What is GHO stablecoin?
GHO is a decentralized, multi-collateral stablecoin that is fully backed by Aave. It is a stablecoin pegged to the value of the US dollar that is designed to incentivize the continued growth of the DeFi ecosystem, as well as strengthen Aave's lending ecosystem to make it more attractive and competitive. GHO is the first native stablecoin developed by this decentralized protocol.
To mint the GHO stablecoin, users must provide collateral assets as collateral to the protocol. GHO can be minted and burned in a trustless manner, facilitating a high level of transparency and censorship resistance.
On the other hand, the developers of the DeFi protocol are fully involving the crypto community in the creation of this stablecoin. On its website, Aave indicates that all protocol updates and updates to interest rates and risk parameters will be public and will be pre-agreed by Aave governance before their implementation.
At the moment, GHO has been implemented on Ethereum's Goerli testnet in order to evaluate its performance and throughput before its arrival on the mainnet.
Decentralized governance
Aave has opened a New governance vote related to the GHO update. On the governance forum, Aave Companies details that there are only a few steps left before its native stablecoin can be deployed on the Ethereum mainnet.
Aave developers are also inviting the crypto community to participate in providing feedback on the protocol and stablecoin by testing GHO and providing feedback on its implementation on Goerli and on the deployment of its smart contract.
The launch of GHO on the Goerli testnet comes just days after the announcement of the deployment of the third version of the decentralized protocol, Aave Protocol V3, focused on introducing new features to Aave and optimizing capital efficiency.
With the development of GHO, Aave is entering the market for decentralized and overcollateralized stablecoins, a market dominated so far by DAI, the stablecoin developed by the MakerDAO protocol, which has a market capitalization of $ 5.200 million dollars, according to data from the CoinMarkerCap platform.
Continue reading: Aave Protocol V3: This is the new version of the Ethereum decentralized lending protocol
