• Aave, a leading DeFi protocol, has deployed its GHO stablecoin on the Ethereum Goerli testnet.
• The mainnet launch of GHO is still pending approval from the Aave DAO through community proposals and voting.
• The launch of GHO will bring increased competition to MakerDAO’s DAI stablecoin and Curve’s crvUSD stablecoin.
Aave Deploys GHO Stablecoin on Ethereum’s Goerli Testnet
Leading crypto decentralized finance (DeFi) protocols, Aave, has successfully deployed its native stablecoin GHO on Ethereum’s Goerli testnet. Potential adopters and developers of the stablecoin can access the codebase and test how it works before being released to the general public on Ethereum.
Aave Governance Through Proposals & Voting
The launch of the GHO mainnet depends on community discussions and approval through the Aave DAO which is in charge of Aave governance through proposals and voting. The DeFi community has been eagerly awaiting for the GHO stablecoin launch since August 2020 when it was supported by the Aave community.
Stiff Competition From Maker’s DAI Stablecoin
Aave’s involvement with stablecoins means it will face stiff competition from rival DeFi protocols like Maker that have issued their own native stablecoins such as DAI. Currently, MakerDAO’s DAI stablecoin is one of the largest decentralized ones in circulation today. Curve is also developing its own crvUSD token too.
Advantage for Aave?
Despite this competition, however, Aave may have an advantage due to its top position in terms of total value locked (TVL) at $7.15 billion which could give it a jumpstart with its own project development compared to other established players in the space such as Maker or Curve.
In conclusion, while Aave has successfully deployed its native stable coin GHO on Ethereum’s Goerli test net ,the mainnet launch awaits approval from Aaves governance system via proposals and voting by users in their community . Additionally ,the release ofGHo into mainstream adoption presents new competition for existing popular Stable coins such as MakerDAOs Dai or Curve’s Crvusd . However ,due to their current market standings ,Aaves jump start with their project may give them an edge over these established projects .