DeFi protocol Aave has launched its new algorithmic dollar-pegged stablecoin, GHO. $2.19 million was minted in the first transactions from the GHO, which was activated on the Ethereum mainnet. The stablecoin will be backed by a large number of digital assets, including ETH and AAVE.
Decentralized finance (DeFi) protocol Aave announced the launch of GHO, which it describes as a decentralized and over-collateralized stablecoin. The stablecoin will be backed by a large number of digital assets, including ETH and AAVE. Nearly all 424 participants approved the community vote for the GHO. Launched on the GHO mainnet following the governance vote. $2.19 million was printed in initial transactions from the GHO. The GHO traded just below the desired $1 peg at $0.9927.
Aave noted that the assets supporting the GHO are transparent, verifiable, and verifiable with on-chain data. In the statement made by the platform, attention was drawn to the uncertainties in the reserves of stablecoins such as USDT. Aave stated that all transactions in GHO are carried out through self-executing smart contracts.
The protocol stated that the income of the GHO will further strengthen the DAO treasury. He emphasized that the management will be entrusted to the AAVE and stkAAVE token holders. The algorithmic stablecoin market is growing day by day. DeFi protocol Curve launched crvUSD on May 4. DAI is the largest algorithmic stablecoin in circulation, with a market cap of $4.28 billion, according to data from DefiLlama.