Aave's Game-Changing Move

In a recent development, leading DeFi protocol Aave has put forward an important proposal for the launch of GHO, its native stablecoin, on the Ethereum Mainnet. The proposal suggests employing two initial facilitators: the Aave V3 Ethereum Facilitator and the FlashMinter Facilitator.

The AIP (Aave Improvement Proposal) aims to make GHO available to users on Ethereum's Mainnet after a thorough community discussion, multiple phases of the Aave DAO governance process, and extensive testing on Ethereum's Goerli Testnet.

If this proposal gains approval from the Aave DAO, it will mark a significant milestone for the Aave ecosystem and the Aave DAO, ushering in a new era. Aave V3 users on Ethereum will have the opportunity to mint GHO against their collateral, introducing a competitive edge to stablecoin borrowing on the Aave Protocol.

Furthermore, the introduction of GHO is expected to generate additional revenue for the Aave DAO. Notably, 100% of the interest payments made on GHO borrows will be directed to the DAO treasury, contributing to its financial strength.

The Aave DAO will also possess the authority to adjust GHO's interest rate as needed through a decentralized governance process. This decentralized financial framework will be managed by the Aave DAO, ensuring transparency and community involvement.

The launch of GHO on Ethereum Mainnet holds immense potential for expanding the capabilities and offerings of the Aave ecosystem, solidifying its position in the DeFi space.

The proposal kickstarted on July 11 and will run through July 14. Check out the full proposal details here. 

What is Aave:

Aave is a decentralized crypto lending platform that allows users to borrow and lend crypto. Aave specializes in overcollateralized loans that require users to deposit crypto worth more than their loan amount.

Learn more about Aave:

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