Aave’s GHO Stablecoin Achieves $2.5 Million Minting Value in Just 48 Hours
Aave’s algorithmic stablecoin, GHO, launched on the Ethereum network, has already achieved a total minting value of $2.5 million within 48 hours of its launch.
GHO is a decentralized and over-collateralized stablecoin pegged to the United States dollar. It is backed by various 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 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 GHO’s governance.
The Aave DAO, composed of members, has the authority to determine the stablecoin’s supply, interest rates, and minting limits. They also approve and supervise facilitators who can create GHO under specific conditions.
The Aave DAO has successfully launched @GHOAave on the Ethereum Mainnet. Congrats to the Aave community on this historic moment! pic.twitter.com/Br3QGqMU8X
— Aave (@AaveAave) July 15, 2023
The community showed overwhelming support for the stablecoin, with nearly 100% of participating addresses voting in favor of its launch. Out of the 424 participating addresses, 421 wallets holding 881,059 AAVE tokens supported the launch.
GHO is now available on the Aave V3 market, where users can generate GHO by utilizing a variety of cryptocurrencies as collateral, including AAVE, ETH, USDT, USDC, and DAI.
The launch of GHO has contributed to the significant growth of Aave’s total locked value, which has reached $5.938 billion, representing a 16% increase compared to the previous month. The circulating market cap of Aave has also surged by 52.85%, currently standing at $1.13 billion.
Transparency and verifiability of underlying assets are key features of GHO. Aave ensures that the assets supporting GHO can be audited directly from the blockchain or through various user interfaces, thanks to the use of self-executing smart contracts.
As GHO continues to gain traction, it is expected to further enhance the decentralized finance ecosystem and provide users with a reliable and transparent stablecoin option.
