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Aave DAO Approves the Launch of a Collateral-Backed Stablecoin Called GHO

Aave DAO Approves the Launch of a Collateral-Backed Stablecoin Called GHO

On Sunday, the non-custodial market protocol Aave announced that the Aave DAO has approved a new stablecoin for the ecosystem called “GHO.” Aave Companies proposed the stablecoin during the first week of July and the collateral-backed stablecoin will be pegged to the U.S. dollar’s value.

A New collateral-Backed Stablecoin Crafted by Aave Companies Is Due to Launch After the Aave DAO Votes on Genesis Parameters

Aave explained on Sunday that the Aave decentralized autonomous organization (DAO) approved a proposal to create a stablecoin token called “GHO.” “The community has given the green light for GHO,” the official Aave Twitter account detailed. “The next step is voting on the genesis parameters of GHO, look out for a proposal next week on the governance forum.”

The GHO introductory blog post, published on July 7, 2022, says the stablecoin will be “backed by a diversified set of crypto-assets chosen at the users’ discretion, while borrowers continue earning interest on their underlying collateral.” The governance proposal was approved by a great majority of Aave DAO voters, as more than 99% of voting participants voted in favor of launching GHO.

Aave DAO Approves the Launch of a Collateral-Backed Stablecoin Called GHO

The governance proposal’s approval snapshot says GHO will “provide benefits for the community via the Aave DAO by sending 100% of interest payments on GHO borrows to the DAO” and GHO will be “administered by Aave governance.” Aave’s stablecoin will join the stablecoin economy, which is currently valued at $153 billion. Tether (USDT) leads the stablecoin pack and usd coin (USDC) follows behind USDT, in terms of overall market capitalization.

GHO will also join stablecoin crypto assets that leverage collateral assets and some that leverage the method of over-collateralization. Makerdao’s DAI stablecoin is over-collateralized and Tron’s USDD is also over-collateralized, which means there’s more collateral than necessary to cover the stablecoin’s backing during times of extreme market volatility.

“As a decentralized stablecoin on the Ethereum mainnet, GHO will be created by users (or borrowers),” Aave Companies’ blog post about the subject explains. The blog post further adds:

Correspondingly, when a user repays a borrow position (or is liquidated), the GHO protocol burns that user’s GHO. All the interest payments accrued by minters of GHO would be directly transferred to the Aave DAO treasury; rather than the standard reserve factor collected when users borrow other assets.

Aave Companies Says Community Was Very Engaged With GHO Governance Proposal

Aave also has a native token which is ranked 45 out of more than 13,000 crypto assets today. The digital asset has a market valuation of around $1.46 billion and aave (AAVE) has increased 84.7% during the last month. The open source decentralized lending protocol is the third largest decentralized finance (defi) protocol in terms of total value locked. Data from defillama.com indicates that Aave has $6.59 billion locked on July 31. In mid-May, Aave launched a Web3, smart-contracts-based social media platform called the Lens Protocol. The Lens platform has more than 50 applications built on top of the Polygon (MATIC) network.

As far as the GHO stablecoin is concerned, Aave Companies said that the community was “very engaged with the GHO proposal, providing incredibly helpful and informative feedback.” Aave detailed some of the things mentioned by the community the team will focus on which includes DAO-set interest rate vulnerabilities, supply caps, a peg stability module, and the “necessity for properly vetting potential facilitators.” For now, the community will have to participate in voting on the stablecoin’s genesis parameters before the crypto token is issued.

What do you think about the upcoming Aave stablecoin project called GHO? Let us know what you think about this subject in the comments section below.

Report: Helium caught in a web of falsehoods about its partnerships

Reports have emerged that Helium (HNT) has misled the public about its partnerships. According to the reports, the company has no collaboration with Lime or Salesforce, as it touts on its website. No Lime partnership A Mashable report revealed that Lime does not have any partnership with Helium. The transportation company has denied having any::Listen

Reports have emerged that Helium (HNT) has misled the public about its partnerships. According to the reports, the company has no collaboration with Lime or Salesforce, as it touts on its website.

No Lime partnership

A Mashable report revealed that Lime does not have any partnership with Helium.

The transportation company has denied having any partnership with Helium since 2019 and claimed it only had initial testing of the blockchain technology firm.

Lime senior director for corporate communications Russell Murphy said:

“Beyond an initial test of its product in 2019, Lime has not had, and does not currently have, a relationship with Helium.”

Murphy added that part of the condition for the trial is that Helium would not use its name for promotional material. Helium violated that condition and stated it is “trusted by” Lime.

Despite Lime knowing about these misrepresentations, the company has failed to take legal action. However, Lime plans to send a cease and desist letter to the crypto company soon.

Salesforce denies partnership

Another company that Helium claims to have a partnership with, Salesforce, has denied the existence of any relationship.

Salesforce and Lime logos appear on Helium’s website as part of the companies using the firm’s tech.

Salesforce spokesperson Ashley Eliasoph has denied this. Eliasoph said:

“Helium is not a Salesforce partner,” and regarded the graphic on the website showing the Salesforce logo as inaccurate.

Meanwhile, Helium has removed both Salesforce and Lime logos from its website. It also did not respond to media inquiries on the subject.

Crypto community reactions

These new revelations about the crypto project came when the company faced increased scrutiny from crypto community stakeholders about its revenue.

In a recent Twitter thread, Angel investor Liron Shapira described Helium as a failed project where he explained that the company had little revenue despite spending millions.

The project’s Reddit community members have added that the developers needed to be brought to book as the purported partnerships were used to draw unsuspecting investors.

The post Report: Helium caught in a web of falsehoods about its partnerships appeared first on CryptoSlate.

Aave DAO Approves the Launch of a Collateral-Backed Stablecoin Called GHO

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