After Luna/UST’s fall, the defi world is not as quiet as seen on the surface. More stable coins are rising. One of them is GHO - AAVE DAO approves creating its own stablecoin GHO, which will be backed by over-collateralized assets that continue to earn yield.

Users looking to mint GHO first will deposit token accepted by AAVE. Users who borrow GHO against crypto assets will still earn interest on the underlying collateral used to mint the stablecoin. The lending protocol will also charge interest on loans taken out in GHO, with payment going back to AAVE DAO.

The deposits users allocate in order to mint GHO will have to be greater than the vaule of GHO they receive, meaning that the loans will be over-collateralized. When users repay a borrowing position or are liquidated, the GHO lent will be burned from the protocol.

GHO will be pegged to the US dollar and the stablecoin will be backed by a mix of crypto tokens that users deposited. The native interest rate of the stablecoin will be determined by the AAVE DAO.

https://twitter.com/AaveAave/status/1545057714815901696?s=20&t=zHn4-_laYDtM-bd3dPzK4w

After Luna/UST’s fall, the defi world is not as quiet as seen on the surface. More stable coins are rising. One of them is GHO - AAVE DAO approves creating its own stablecoin GHO, which will be backed by over-collateralized assets that continue to earn yield.

Users looking to mint GHO first will deposit token accepted by AAVE. Users who borrow GHO against crypto assets will still earn interest on the underlying collateral used to mint the stablecoin. The lending protocol will also charge interest on loans taken out in GHO, with payment going back to AAVE DAO.

The deposits users allocate in order to mint GHO will have to be greater than the vaule of GHO they receive, meaning that the loans will be over-collateralized. When users repay a borrowing position or are liquidated, the GHO lent will be burned from the protocol.

GHO will be pegged to the US dollar and the stablecoin will be backed by a mix of crypto tokens that users deposited. The native interest rate of the stablecoin will be determined by the AAVE DAO.

https://twitter.com/AaveAave/status/1545057714815901696?s=20&t=zHn4-_laYDtM-bd3dPzK4w