Aave DAO members will start voting later today on whether to launch the eagerly anticipated gho (GHO) stablecoin on the Ethereum blockchain, according to an Aave Improvement Proposal (AIP).Users can earn yields on their pledged tokens by using the lending and borrowing platform Aave.Users can create the gho token using a variety of different crypto assets.GHO holders will continue to receive interest on the provided collateral, exactly like in other loan transactions on Aave, which is Finnish for “ghost.”The idea is to launch GHO through so-called “facilitators,” which would let users of Aave version 3 (V3) create GHO using token holdings that were provided to the platform.
“If approved, the introduction of GHO would make stablecoin borrowing on the Aave Protocol more competitive and generate additional revenue for the Aave DAO by providing to the DAO treasury 100% of the interest payments made on GHO borrows,” the proposal states.
Since February, Gho has been accessible on the Goerli testnet of the Ethereum blockchain, where it has operated without experiencing any significant issues.Developer Aave Companies suggested the V3 Ethereum Facilitator, which would enable gho lending against collateral deposits, and the FlashMinter Facilitator, a variation on flash loans, or loans offered against zero collateral, in a governance post at the beginning of June.Depositors can borrow GHO in exchange for the collateral they have deposited in Aave V3’s Ethereum mainnet pool thanks to these facilitators, which can be protocols or entities with the power to generate and burn GHO tokens up to a predetermined limit.