Aave, a web3 protocol company, has announced a new dollar-based stablecoin “GHO” (pronounced Go), on Ethereum’s Goerli Testnet. Pegged one to one to the US dollar, the digital asset is said to be overcollaterizled
According to the company, the Aave DAO will manage the supply of GHO, the interest rate, and determine the risk parameters. Repaid interest is redirected to the DAO, rather than asset suppliers, contributing to the DAO treasury.
Developers and integrators may now access the GHO codebase and begin testing before the planned launch.
Borrowers and suppliers can mint GHO using assets they have supplied into V3 of the Aave Protocol as collateral on Ethereum markets.
Stani Kulechov, founder and CEO of The Aave Companies, said that stablecoins are the backbone of the crypto economy and their usage will continue to grow. He said that GHO will be able to “power a payment layer that can easily, securely and efficiently transfer value across DeFi and TradFi ecosystems.”
All GHO transactions are conducted via immutable smart contracts, and all information is minted regarding GHO and visible on-chain, via either querying the blockchain directly or using an interface such as app.aave.com.”
The Aave DAO is responsible for approving Facilitators who can mint and burn GHO tokens.
Currently, th GHO’s repository is subject to the Aave GHO Bug Bounty, which will reward community members who actively discover and submit reports of security vulnerabilities.