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Aave Lending Protocol Moves Toward Mainnet Launch of GHO Stablecoin on Ethereum

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AAVE

In a governance post on Tuesday, the developer suggested two key features for the decentralized stablecoin.

Lending protocol The developer of Aave’s stablecoin gho (GHO) took a step toward launching it on Ethereum’s mainnet by suggesting two key features that would help holders and keep the token’s stability intact.

Since February, Gho has been available on the Ethereum blockchain’s Goerli testnet. It has worked there without any big bugs.

In a governance post on Tuesday, developer Aave Companies suggested the V3 Ethereum Facilitator, which would allow gho lending against collateral deposits, and the FlashMinter Facilitator, a version of flash loans, which are loans given with no collateral.

These facilitators, which can be either protocols or entities, have the power to create and burn GHO tokens up to a specific limit. This lets people who put collateral in Aave V3’s Ethereum mainnet pool borrow GHO in exchange for their collateral.

In the outline, both facilitators were accepted. The more detailed plans, which are still being discussed, have yet to set a date for voting.

The FlashMinter Facilitator will let people borrow GHO and pay it back in a single transaction. It will start with a capacity of 2 million GHO and will not charge any fees.

Gho was first suggested as a decentralized stablecoin in June of last year. It would be backed by a basket of cryptocurrencies chosen by Aave users, and borrowers would continue to earn interest on their collateral.

The proposal at the time said that the token would bring in more money for the Aave decentralized autonomous organization by sending all interest payments on GHO loans to the DAO. It will start on Ethereum, and the plans say it will be released on other blockchains based on the community’s wants and how they vote.

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