Aave Protocol Unveils GHO Stablecoin on Ethereum Mainnet, with 2 Million Dollars Worth of Tokens Minted

Aave Protocol, the decentralized finance (DeFi) protocol, has successfully launched its algorithmic stablecoin GHO on the Ethereum mainnet, with a total of $2.19 million worth of GHO tokens minted to date.

Aave Protocol Unveils GHO Stablecoin on Ethereum Mainnet, with 2 Million Dollars Worth of Tokens Minted

In a blog post on July 16, Aave officially announced the introduction of the new stablecoin, describing it as a decentralized and over-collateralized asset. GHO is backed by a diverse range of digital assets, including Ethereum’s native currency Ether (ETH), and Aave’s native token AAVE.

The launch of GHO on the mainnet was the result of a community governance vote, where an overwhelming majority of 424 participating addresses voted in favor of the stablecoin.

Unlike centralized stablecoins like Tether’s USDT, GHO stands out for its transparent and verifiable asset reserves, which can be easily confirmed through on-chain data. All transactions involving GHO are executed via self-executing smart contracts, and the details of these transactions are accessible and auditable directly from the blockchain or through various user interfaces.

Anyone can mint GHO using the assets they supply into the Aave Protocol V3 Ethereum market as collateral, ensuring that GHO is overcollateralized by a multitude of assets.

Circle CEO

Furthermore, Aave Protocol stated that GHO’s revenue would contribute to its DAO treasury, with governance entrusted to AAVE and stkAAVE token holders.

The introduction of GHO marks another addition to the growing array of DeFi-native algorithmic stablecoins. On May 4, Curve, another DeFi protocol, launched its flagship algorithmic stablecoin, crvUSD.

Currently, MakerDAO’s Ethereum-based stablecoin DAI holds the title of the largest algorithmic stablecoin in circulation, boasting a market capitalization of $4.28 billion according to data from DefiLlama.

Despite the rise of algorithmic stablecoins in the DeFi space, the overall stablecoin market continues to be dominated by centralized issuers like Tether and Circle.