🎉 #Gate Alpha 3rd Points Carnival & ES Launchpool# Joint Promotion Task is Now Live!
Total Prize Pool: 1,250 $ES
This campaign aims to promote the Eclipse ($ES) Launchpool and Alpha Phase 11: $ES Special Event.
📄 For details, please refer to:
Launchpool Announcement: https://www.gate.com/zh/announcements/article/46134
Alpha Phase 11 Announcement: https://www.gate.com/zh/announcements/article/46137
🧩 [Task Details]
Create content around the Launchpool and Alpha Phase 11 campaign and include a screenshot of your participation.
📸 [How to Participate]
1️⃣ Post with the hashtag #Gate Alpha 3rd
Aave is brewing the launch of a decentralized stablecoin GHO to expand its DeFi landscape.
Aave plans to launch a new type of decentralized stablecoin GHO
The Aave community recently proposed a new initiative aimed at introducing a decentralized stablecoin GHO pegged to the US dollar. This native stablecoin will be backed by various crypto assets as collateral and governed by the Aave community.
The design concept of GHO is to provide users with a decentralized, transparent, and censorship-resistant stablecoin option. It will allow users to mint GHO based on the collateral they provide, while still earning interest on the collateral. It is worth noting that all decisions related to GHO will be governed by the Aave governance mechanism.
If the proposal is approved, the introduction of GHO will make stablecoin lending on the Aave protocol more competitive, providing users with more options. At the same time, the interest generated from GHO lending will flow entirely into the Aave DAO, bringing additional revenue.
The Working Mechanism of GHO
As a decentralized stablecoin on the Ethereum mainnet, GHO will be created by users. Users need to provide collateral at a specific collateralization ratio to mint GHO. When users repay their loans or are liquidated, the protocol will burn the corresponding GHO.
GHO introduces the concept of "facilitators", entities that can generate and destroy GHO tokens in a trustless manner. Each facilitator needs to be approved by the Aave governance body and is assigned a specific "bucket" that represents its GHO generation limit.
Integration of Aave and GHO
The Aave-GHO integration will adopt the same mechanism as other assets in the Aave protocol, namely the deployment of specific GHO aTokens and GHO debt tokens. The borrowing rate for GHO will be determined by the Aave DAO, remaining stable but adjustable based on market conditions.
In addition, GHO will also introduce a discount model. The initial deployment will allow participants in the security module (stkAAVE holders) to receive discounts on GHO borrowing rates, with the specific discount levels controlled by the Aave governance department.
The Synergy between Aave V3 and GHO
Aave V3's isolation mode will allow users to generate GHO using multiple assets while reducing risk through collateral backing. The E-Mode feature can play a stabilizing role during market fluctuations, while the Portal feature provides an ideal pathway for the expansion of GHO in a multi-chain world.
Governance and Market Applications
The introduction of GHO will bring new sources of revenue and governance power to the Aave DAO. The DAO will be able to determine the native interest rate of GHO and make adjustments through the governance process. This means that the monetary policy of GHO will be controlled in a Decentralization manner by the Aave governance body.
It is expected that GHO can not only be applied in the native crypto community but also expand to a wider range of scenarios, especially on Layer 2 networks. In the future, there may be incentives through cash rewards and hackathons to encourage the development and integration of GHO payment methods to attract more mainstream users.
Overall, the launch of GHO aims to provide users with a secure, decentralized stablecoin option, while leveraging the growth potential of Layer 2 to develop more application scenarios for the growing mainstream user base.