Aave’s GHO Stablecoin is Now Available on Ethereum’s Goerli Testnet

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Last Updated on February 9, 2023 by Bitfinsider

Aave Companies, the company behind the Aave DeFi project, announced on Thursday the introduction of the protocol’s native stablecoin, GHO, on Goerli, an Ethereum testnet network.

According to the statement, those who want to test GHO on Goerli may now access the stablecoin’s codebase on GitHub. The stablecoin’s deployment on Goerli today is part of the stablecoin’s planned rollout on the Ethereum mainnet.

GHO’s formal mainnet debut will be approved by Aave DAO, the community that governs the Aave protocol. This will occur at a later time.

When it is released, GHO will be Aave’s native stablecoin tied to the US dollar. The token will be overcollateralized, similar to MakerDAO’s DAI stablecoin. This implies that users will be required to provide collateral in amounts greater than the value of GHO they desire to mint.

According to previously disclosed data regarding the upcoming stablecoin, collateral assets for GHO would also earn income. Aave DAO will receive interest payments from stablecoin borrowers. According to the Thursday update, all refunded interest will be sent to the Aave DAO treasury.

The Aave DAO will also have authority over the GHO stablecoin facilitator set. Facilitators are people who have the ability to mint and burn GHO tokens. Aave Companies has suggested that the Ethereum V3 pool be the first facilitator at the introduction of the GHO mainnet.

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