Aave Protocol, a decentralized finance platform, has launched a new stablecoin called GHO on the Ethereum network.
The stablecoin is backed by various digital assets, including Ethereum and Aave’s native token.
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The launch of GHO was approved through a community vote. Unlike some other stablecoins, the assets supporting GHO are transparent and can be verified on the blockchain. All transactions involving GHO are conducted through smart contracts, ensuring transparency and auditability.
The revenue generated by GHO will contribute to Aave’s treasury, with governance entrusted to token holders. GHO joins the growing list of algorithmic stablecoins in the DeFi space. However, centralized stablecoins like Tether and USD Coin still dominate the market. Currently, GHO is trading slightly below the desired $1 value but remains close to it.
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