Aave is set to mark the DeFi ecosystem – After months of testing and discussions, Aave is about to launch your stablecoin GHO. Its particularity: being managed in a decentralized way by the Aave community.
The deployment of GHO on the Ethereum mainnet
After much community deliberation, the time has come. THE launch of the stablecoin GHO on the Ethereum Mainnet network is imminent.
Aave announced the development of the GHO, a dollar-based stablecoinin July 2022. They subsequently deployed it to the testnet last February.
Thus, on June 6, AaveCompanies published a proposal via the governance of the protocol, aimed at preparing the deployment of the GHO on the mainnet.
“This ARFC proposes to launch GHO, an Aave-native stablecoin, with two initial enablers: the Ethereum Aave V3 enabler and the FlashMinter enabler. If this ARFC and the resulting AIP are approved by the DAO Aave, GHO will launch on the Ethereum Mainnet. »
Aave v3 users could issue the GHO in exchange for their collateral. For its part, the protocol will also benefit, thanks to the interest paid on the loans contracted.
The enablers behind the launch of GHO
GHO introduces the concept of facilitators in its emission mechanism. Thus, a facilitator can create and destroy GHO tokens.
Therefore, the governance of Aave has approved two enablers in a preliminary vote… These are the enablers: Aave V3 Ethereum Pool and the FlashMinter.
On the one hand, the Aave V3 Ethereum Pool allows depositors to borrow GHO against the deposit of their collateral. In practice, the collateral is deposited in said Liquidity Pool.
On the other hand, the GHO will also have a second facilitator at its launch: the FlashMinter. The FlashMinter will allow FlashMinter users to GHO and refund in one transaction. In other words, it is an implementation that allows flashloans through the stablecoin GHO.
Now it’s up to the community to decide if the set of deployment details are right for them. Subsequently, if the community vote is favorable, the GHO will be deployed on the Ethereum mainnet.
Hopefully, however, the launch will be bug-free. Indeed, in mid-May, the Aave v2 protocol encountered some inconvenience on Polygon after the temporary blocking of 120 million dollars.