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Aave’s GHO Deployment On Ethereum Inches Closer As DAO Votes In Favor

cryptocurrency July 12, 2023
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  • The proposal to launch GHO on Ethereum’s mainnet reached quorum after protocol delegate AaveChan voted “Yae” on Wednesday.
  • Aave DAO’s community wholly backed the plan as all members of the DAO voted in support with over 698,000 votes at press time.
  • This comes after months of successfully testing the GHO stablecoin on the Ethereum testnet Goerli and developers encountered no major bugs with the token.

Stablecoin GHO is set to debut on the Ethereum mainnet following Aave DAO’s support of a plan to introduce the token via two facilitators. The proposal reached quorum after a key project delegate voted “Yae”.

Aave companies floated the proposal in the protocol’s DAO on Tuesday, arguing that launching GHO on Ethereum would make stablecoin borrowing on the platform more competitive and increase revenue for the $5 billion DeFi lending titan.

The proposal plans to introduce GHO to Ethereum’s mainnet via two facilitators. Aave V3 Ethereum Pool Facilitator will allow users to borrow GHO tokens against collateral deposited in V3 Ethereum Mainnet Pool.

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Users can also mint GHO without any collateral by using the FlashMinter Facilitator, provided that the loan is repaid in a single transaction after flash minting Aave’s stablecoin. The proposal said this method could help to maintain GHO’s peg and offer arbitrage opportunities for high-level users.

As a result of this TEMP CHECK, it is agreed by the community that the FlashMinter Facilitators initial bucket capacity will be 2,000,000 GHO and that there will be no fee paid to the Facilitator. In the early stages, GHO’s ability to maintain its peg will be enhanced by low fees, which further incentivizes arbitrage

Aave DAO Eyes Friday For GHO Launch On Ethereum

Although voting is still on at press time, over 698,000 votes in support of deploying GHO on Ethereum’s mainnet suggest that the proposal would be approved by 14:21 UTC +01:00 on Friday when voting closes.

Proponents expect that GHO will then officially launch on Ethereum by July 15 after nearly six months of testing on Goerli by developers.

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