Aave Protocol Launches Decentralized Stablecoin on Ethereum Mainnet

Aave, a decentralized finance (DeFi) protocol, has launched its algorithmic stablecoin GHO on the Ethereum mainnet

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The stablecoin, backed by various digital assets including Ether and AAVE, is described as decentralized and over-collateralized

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The launch of GHO followed a community governance vote, with an overwhelming majority in favor of the stablecoin

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This ensures transparency and verifiability of the assets backing GHO through on-chain data

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GHO's revenue will contribute to Aave's DAO treasury, with governance entrusted to AAVE and stkAAVE token holders

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GHO is available to the public and can be minted by using assets supplied to the Aave Protocol V3 Ethereum market as collateral

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Aave's GHO joins the ranks of DeFi-native algorithmic stablecoins, with Curve's crvUSD being another notable example

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MakerDAO's Ethereum-based stablecoin DAI currently holds the largest market capitalization in this category

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However, the stablecoin market is still largely dominated by centralized issuers such as Tether (USDT) and Circle's USD Coin (USDC)

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