Aave's newly launched algorithmic dollar-pegged stablecoin, GHO, has seen 2.76 million coins minted in 48 hours of its release, according to Etherscan.
Aave Launches USD-Pegged Stablecoin GHO
Aave's newly launched algorithmic dollar-pegged stablecoin, GHO, has seen 2.76 million coins minted in 48 hours of its release, according to Etherscan.
Aave's governance token holders, who control GHO governance and set and change the total supply, interest rate and minting caps, as well as choose and control Facilitators, gave their approval for the launch.
A Facilitator is a protocol or organization designated by the Aave DAO to mint GHO. Since more reserves were staked to mint one GHO than there are GHO in circulation, GHO is overcollateralized.
The interest from borrowing GHO is paid to the DAO treasury, and users can mint GHO by offering other cryptocurrencies that are listed on Aave V3 as collateral. Aave's V3 market has a 100 million GHO maximum minting capacity, however the Aave DAO may increase it with another community vote.
This follows the over-collateralized stablecoin crvUSD, which was introduced by Curve Finance earlier in May on Ethereum. To date, 82 million crvUSD have been minted.
