Following a community vote, Aave Companies announced that the Aave DAO would launch a decentralized, multi-collateral-backed stablecoin called GHO.
The DAO community supposedly gave the USD-pegged stablecoin a unanimous thumbs up, with the site reporting 99.99 percent approval.
On July 7 this year, the GHO proposal was released, along with the governance vote necessary to launch the decentralized stablecoin on the Aave Protocol.
According to the Aave Companies’ request, community members would be able to mint the token. It is done by using their collaterals with the help of an algorithmic stablecoin. So, the original plan for GHO was for it to be collateralized by whatever the customers wanted. With the borrowers continuing to accrue interest on the underlying collateral.
When a borrower makes a payment against their collateral, the Aave Protocol will destroy the corresponding amount of GHO.
Aave’s Proposal
The Aave Companies proposed adding GHO. It would make stablecoin borrowing on the Aave Protocol more competitive, give greater optionality for stablecoin users, and create additional money for the Aave DAO if implemented.
Following a snapshot on July 27, the governance vote opened on July 28. It ended on July 31, with 1,793 votes cast and 99.99% in favor. Thanks to the green light, the stablecoin GHO can now proceed to the next stage, a vote on the token’s genesis parameters.
In the coming week, a proposal along these lines is scheduled to be made on the Aave DAO governance forum.
ETH on Real Metaverse
The co-creator of the Ethereum blockchain discussed the venture capitalists’ support for projects related to the Metaverse. When Meta (previously Facebook) wanted to provide its consumers with a cutting-edge VR experience, it unveiled a new initiative called Metaverse.
Beginning in the third quarter of 2021, Facebook began using the term Meta. This is to reflect its commitment to the Metaverse and its efforts to build new technologies for it. Though the Metaverse concept has the potential to yield several future benefits, its precise ecosystem framework is currently unknown. Hence, each industry leader is taking their approach to developing Metaverse enterprises.
A gamer who tweets about the industry’s need for a cutting-edge virtual experience recently revealed that they are a real person. He added that venture capitalists are clueless about gamers because they don’t play games themselves.
In response to this Twitter user, Ethereum blockchain co-founder Vitalik Buterin wrote, Metaverse will happen. However, no existing VCs can do that.
And in his reply to another user in the same post, Vitalik said that Facebook-now-called “Meta” couldn’t provide anything to the Metaverse. It is because it doesn’t understand its users’ needs. Meta has already launched its Stablecoin Libra through the Diem Association after working in the cryptocurrency market. The massive red tape eventually led to Meta abandoning the project.
About six months ago, Meta sold all of its shares in the Diem Association.
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