Aave, a DeFi protocol, has launched GHO, a new algorithmic stablecoin pegged to the US dollar, on the Ethereum mainnet.
GHO is a “decentralized, over-collateralized” asset that is backed by a “multitude” of digital assets, such as Ether and AAVE.
The launch of GHO was approved by a community governance vote, where nearly 100% of the 424 voters supported the new stablecoin. As of July 16, $2.19 million worth of GHO had been created.
Aave claimed that GHO is more transparent and verifiable than centralized stablecoins like USDT, which has faced some scrutiny for its unclear reserve backing.
The assets that support GHO are visible and provable on the blockchain, according to Aave.
Additionally, Aave said that the earnings from GHO would boost its DAO treasury, and that the governance of GHO would be delegated to AAVE and stkAAVE token holders.
