Aave Launching Final Version of its GHO Stablecoin on Ethereum

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Aave Companies is heading towards the implementation of their fully decentralized GHO stablecoin on the Ethereum mainnet.

This is the last phase of its rollout and requires two rounds of on-chain votes from the Aave community.

The first is the ARFC preliminary proposal, followed by the final Aave Improvement Proposal. Stablecoins are designed to reduce volatility by connecting their value to a stable asset, such as fiat currency.

GHO will be an overcollateralized loan like MakerDAO’s DAI stablecoin, and the interest generated from GHO borrows will be funneled to the DAO treasury.

If the proposal is accepted by the Aave DAO, it could potentially increase the financial sustainability of the project.