Aave’s dollar-pegged GHO stablecoin achieves $2.5M market cap in 48 hours
In just 48 hours of being launched, Aave’s GHOan algorithmic stablecoin pegged to the US dollar on the Ethereum network, has already reached a total mintage value of $2.5 million.
On July 15, Aave launched GHO, an over-collateralized, decentralized stablecoin backed by a variety of digital assets, including Ethereum’s Ether (ETH) and Aave’s token (AAVE).
With a market capitalization of $2.59 million and a current price of $0.99, GHO (GHO) has a total circulating supply of $2.61 million, according to defilama.
The successful launch of GHO on the mainnet was the result of a community governance vote conducted by the Aave DAO, responsible for overseeing the governance of GHO.
The governing body, made up of members, will have the authority to determine the supply, interest rates, and mintage limits of the stablecoin. They will also approve and supervise facilitators who can create GHOs under specific conditions.
Out of the 424 participating addresses, an overwhelming majority, almost 100%, voted in favor of the new stablecoin.
In the end vote on July 10, 421 wallets with 881,059 AAVE tokens supported the release, while only three wallets collectively holding 10 AAVEs, with one wallet holding the full 10 AAVEs and the remaining two wallets holding fractions, voting against it.
Aave Launched GHO: Overcollateralized Stablecoin on the Market Aave V3
Aave, the lending protocol, has launched GHO, its overcollateralized stablecoin, on the Aave V3 marketplace.
Users can now generate GHO using a variety of cryptocurrencies listed on Aave V3, including AAVE, ETH, USDT, USDC, and DAI, as collateral.
This ensures that GHO maintains a wide range of assets for overcollateralization.
According to the latest update of token terminal, Aave’s total value locked has experienced notable growth, reaching $5,938 million. This represents a significant increase of 16% compared to the previous month and can be attributed to the successful launch of the GHO platform.
In addition, Aave’s current market capitalization has increased an impressive 52.85%, currently standing at $1.13 billion.
“Anyone can mint GHO using the assets they supply on the Aave Protocol V3 Ethereum marketplace as collateral, ensuring that GHO is overcollateralized by many assets,” Aave wrote in a post. blog post.
During its launch, Aave V3 revealed that its Facilitator has a total minting capacity of 100 million GHO, with only 2.5% of the supply currently being minted. However, Aave DAO has the ability to increase this limit through a community vote.
In the Aave V3 protocol, the deposited collateral continues to generate returns, while the interest paid on the GHO loan goes to the DAO treasury, governed by AAVE and stkAAVE token holders.
Additionally, users who contribute AAVE to the security module of the protocol to support the stablecoin can purchase GHO at a reduced price.
What sets GHO apart from centralized stablecoins like Tether USDT is its commitment to transparency and verifiability of the underlying assets.
Aave ensures that the assets supporting GHO can be audited directly from the blockchain or through various user interfaces, thanks to the execution of transactions through self-executing smart contracts.