Aave Protocol debuts 'GHO' stablecoin on Ethereum mainnet
July 17, 2023 7:22 AM
DeFi protocol, Aave has officially launched its newly announced algorithmic dollar-pegged stablecoin GHO on the Ethereum network.
Aave, a DeFi protocol, has released its USD-pegged stablecoin GHO on the Ethereum mainnet, with a total of $2.19 million worth of GHO minted.
Aave announced the debut of the new stablecoin GHO in a blog post on July 16, defining it as a "decentralized, over-collateralized" asset. The stablecoin is supported by a "multitude" of digital assets, including Ethereum's native currency Ether (ETH), and Aave's native token (AAVE).
The mainnet launch of GHO followed a community governance vote in which nearly all 424 participating addresses voted in support of the new stablecoin.
Aave claims that the assets underpinning GHO are visible and verifiable and can be proven by on-chain data, in contrast to centralized stablecoins like Tether's USDT, which have been criticized for an apparent lack of clarity around its reserves.
Aave explained that all transactions are carried out via self-executing smart contracts, and that all data pertaining to GHO transactions is accessible and auditable straight from the blockchain or via a variety of user interfaces.
Aave added that the funds generated by GHO would be used to strengthen the DAO's financial position, with AAVE and stkAAVE token holders being entrusted with the responsibility of governance.
GHO total circulation supply from launch. DeFiLlama, Inc.
GHO stablecoin is now available to the general public:
"Anyone can mint GHO by pledging assets to the Aave Protocol V3 Ethereum market as collateral, which means that GHO is well-protected by a wide variety of assets."
GHO is the latest addition to the growing list of DeFi-native algorithmic stablecoins. Curve, the DeFi protocol, debuted its flagship algorithmic stablecoin crvUSD on May 4.
According to data→ provided by DefiLlama, MakerDAO's Ethereum-based stablecoin DAI has a market worth of $4.28 billion, making it the largest algorithmic stablecoin in circulation at the time of publication.
However, centralized issuers such as Tether and Circle continue to dominate the overall stablecoin market.
Market capitalization domination of stablecoins. DeFiLlama, Inc.
Currently, 87% of all U.S. dollar-pegged stablecoins are held in circulation by Tether's USDT and Circle's USD Coin (USDC).
According to CoinMarketCap price data→, GHO is trading slightly below the targeted $1 peg at $0.9927 at the time of publication and has dipped as low as $0.9814 on July 16.