GHO Released on Ethereum Testnet

In a statement, Aave reported that the app has released its native stablecoin, GHO, on the Ethereum Goerli testnet. After the testing phase, its publication on the mainnet will be determined by voting by Aave. In addition, it was stated that access to GHO’s Github code base was opened so that users who want to test GHO can experience this experience in Goerli.

The GHO, which will operate similarly to MakerDAO’s DAI stablecoin, will be pegged at a 1:1 ratio to the dollar. In addition, while holding the status of an over-collateralized stablecoin like DAI, more collateral than the amount received will be required to buy or borrow GHO. In addition, the deposited collateral will be included in the return program.

Dustin Tender, Analyst at on-chain analytics firm Messari, said he believes GHO will be the best decentralized stablecoin in the industry after DAI. Still, DeFi also warned investors that it would be difficult to see an accelerated expansion in the current economic situation where debt demands are low.