Aave's gho (GHO) stablecoin is one step closer to launching on the Ethereum mainnet. This comes as the developer proposed two critical features, the V3 Ethereum Facilitator and the FlashMinter Facilitator, which would bolster the benefits for token holders while preserving the token's stability.
Since February, GHO has been available on the Ethereum blockchain's Goerli testnet and has functioned without major hitches. The proposed V3 Ethereum Facilitator would allow for GHO lending against collateral deposits. In contrast, the FlashMinter Facilitator, a variant of flash loans that are issued against zero collateral, can create and burn GHO tokens up to a certain limit.
This enables depositors to borrow GHO against their collateral deposited in Aave V3's Ethereum mainnet pool. Both facilitators, previously approved in outline, are now under detailed discussion, with the voting schedule yet to be established.
The FlashMinter Facilitator will enable users to borrow GHO and repay it in a single transaction, with an initial capacity of 2 million GHO on zero fees.
Gho was first introduced in June last year as a decentralized stablecoin backed by a basket of cryptocurrencies chosen by Aave users. The interest on the underlying collateral continues to be earned by borrowers. The Aave decentralized autonomous organization stands to gain additional revenue as 100% of interest payments on GHO borrows will go to the DAO. The stablecoin, initially launched on Ethereum, may be issued on other blockchains based on community demand and voting.
