Aave DAO, the body responsible for the Aave DeFi protocol, has approved the creation of the GHO stablecoin.
The snapshot vote, which ended at 6 am EDT today, passed with near-unanimous approval by the DAO. The data on the voting page shows the DAO members in total. 501,000 AAVE tokens were in favor of the offer. They accounted for 99.99% of the votes cast in the three-day polls.
Aave DAO Development Protocol will be used to implement GHO Stablecoin Formation.
After voting, a new Aave development protocol will be used to implement the creation of the GHO stablecoin (AIP). Once the stablecoin is created, it will be managed by the DAO.
Aave DAO whose users want to mint GHO can do so by sending any of their crypto tokens. It is accepted as a guarantee on the site. In addition to serving as collateral, these deposits will give Aave. Borrowers who receive GHO stablecoin loans will be charged interest according to the protocol.
As with Maker’sDAO’s dai, Aave aims for the GHO to act as an over-collateralized stablecoin (DAI). This indicates that more GHO tokens will be generated than the value of the deposited coin. Stani Kulechov, the founder of Aave, has previously stated that the project will seek to promote the adoption of native GHO in Ethereum’s Tier 2.
Aave will launch a stablecoin, joining a small group of MakerDAO and DeFi stablecoin issuers.