Lending and lending platform Aave (AAVE) has launched a new decentralized stablecoin on the Ethereum (ETH) mainnet.
The dollar-pegged stablecoin called GHO (GHO) is governed by the decentralized autonomous organization (DAO) Aave.
Nader Dabit, director of developer relations at Aave, says that the GHO is an “overcollateralized” stablecoin.
“Anyone can mint GHO using the assets they provide on the Aave Protocol V3 Ethereum marketplace as collateral, ensuring that the GHO is supercollateralized by a multitude of assets.
With GHO, the underlying mechanics and policies are fixed and cannot be arbitrarily changed by a centralized entity or individual. All transactions are done via self-executing smart contracts, and all information related to GHO transactions is published and auditable directly from the blockchain or many user interfaces.”
Aave says in the GHO launch announcement that the stablecoin is transparent and committed to the protocol community.
“Interest repaid in the GHO is redirected to the Aave DAO treasury. This supports the sustainability of the protocol and the continued development of new features.”
More than 2.7 million GHO tokens have been minted on Ethereum since the stablecoin’s official launch on Saturday, according to the project’s website.
The GHO fell from its peg to the dollar to a low of around $0.978 at one point on Sunday. It is trading at $0.982 at the time of this writing.