Aave Companies, the company behind DeFi protocol Aave, proposed to Aave’s management forum the creation of a stablecoin called GHO.
Currently, the proposal is open to discussion and will need to pass a management vote to implement it.
The stablecoin is not intended to be similar in structure to the decentralized stablecoin DAI in the Ethereum ecosystem.
Aave users will be able to issue stablecoins using the assets they provide to Aave as collateral. While these assets are used as collateral, they will continue to generate returns.
Stani Kulechov, founder of Aave, said:
“While the GHO will be secured by the assets in the Ethereum market, the current vision of the GHO is to ensure continued adoption through layer 2 solutions to enable online and real-life payments.”
While GHO would be secured by the assets on the Ethereum market, the main vision for GHO is to pursue organic adoption via L2s to solve real life payment opportunities across the internet and on-ground.
— Stani.lens @ Bogotá 🇨🇴 (@StaniKulechov) July 7, 2022
Expressing that there will be a chance to get interest with the stablecoin, Kulechov emphasized that it will provide a great benefit to the user.
Kulechov stated that stablecoin development is complete and a review will be held on July 11.
