{"id":20040,"date":"2023-07-17T03:29:55","date_gmt":"2023-07-17T03:29:55","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/aave-protocol-launches-stablecoin-gho-on-ethereum-mainnet-2m-minted\/"},"modified":"2023-07-17T03:29:57","modified_gmt":"2023-07-17T03:29:57","slug":"aave-protocol-launches-stablecoin-gho-on-ethereum-mainnet-2m-minted","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/aave-protocol-launches-stablecoin-gho-on-ethereum-mainnet-2m-minted\/","title":{"rendered":"Aave Protocol launches stablecoin GHO on Ethereum mainnet, $2M minted"},"content":{"rendered":"
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Decentralized finance (DeFi) protocol Aave has launched its algorithmic United States-dollar pegged stablecoin GHO on the Ethereum mainnet, with $2.19 million worth of GHO minted so far.<\/p>\n

Aave announced the launch of the new stablecoin in a July 16 blog post, describing the new stablecoin GHO as a \u201cdecentralized, over-collateralized\u201d asset. The stablecoin is backed by a \u201cmultitude\u201d of digital assets including Ethereum\u2019s native currency Ether (ETH) and Aave\u2019s native token AAVE (AAVE). <\/p>\n

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Let’s GHO! Congrats to the @AaveAave<\/a> community on the Mainnet Launch. https:\/\/t.co\/vI7JbMLYb4<\/p>\n

\u2014 GHO (@GHOAave) July 15, 2023<\/a><\/p><\/blockquote>\n

The launch of GHO on mainnet came after a community governance vote, which saw nearly 100% of the 424 participating addresses vote in favor of the new stablecoin. <\/p>\n

Unlike centralized stablecoins such as Tether\u2019s USDT (USDT), which have drawn some criticism for an apparent lack of transparency around its reserves \u2014 the assets backing GHO are transparent and verifiable and can be confirmed by on-chain data, according to Aave.<\/p>\n

\u201cAll transactions are performed through self-executing smart contracts, and all data regarding GHO transactions is available and auditable directly from the blockchain or via numerous user interfaces,\u201d Aave wrote.<\/p>\n

Additionally, Aave said GHO\u2019s revenue would further bolster its DAO treasury, with governance being entrusted to AAVE and stkAAVE token holders.<\/p>\n

Total circulating supply of GHO since inception. Source: DeFiLlama<\/em><\/figcaption><\/figure>\n

The GHO stablecoin is currently available to the public:<\/p>\n

\u201cAnyone can mint GHO using the assets they supply into the Aave Protocol V3 Ethereum market as collateral, ensuring that GHO is overcollateralized by a multitude of assets.\u201d<\/p><\/blockquote>\n

Related: <\/em><\/strong>Circle CEO spells doom scenario for US dollar in warning to Congress<\/em><\/strong><\/p>\n

The launch of GHO marks another addition to the growing ranks of DeFi-native algorithmic stablecoins. On May 4, DeFi protocol Curve launched its flagship algorithmic stablecoin crvUSD. <\/p>\n

At the time of publication, MakerDAO\u2019s Ethereum-based stablecoin DAI, is the largest algorithmic stablecoin in circulation, commanding a $4.28 billion market capitalization according to data from DeFiLlama. <\/p>\n

However, the total stablecoin market remains dominated by centralized issuers including Tether and Circle. <\/p>\n

Stablecoin dominance by market capitalization. Source: DeFiLlama<\/em><\/figcaption><\/figure>\n

At current, Tether\u2019s USDT and Circle\u2019s USD Coin (USDC) account for 87% of the total circulating supply of all U.S.-dollar pegged stablecoins. <\/p>\n

At the time of publication, GHO is trading slightly below the desired $1 peg at $0.9927 and has fallen as low as $0.9814 on July 16, according to price data from CoinMarketCap.\u00a0<\/p>\n

Cointelegraph contacted Aave for comment but has yet to receive an immediate response.\u00a0<\/p>\n

Magazine: <\/em><\/strong>Unstablecoins: Depegging, bank runs and other risks loom<\/em><\/strong><\/p>\n<\/div>\n