Aave Companies, a significant contributor to the Aave DeFi lending protocol, is proposing the introduction of the decentralized stablecoin GHO on the Ethereum mainnet as an ERC-20 token. The proposal intends to offer GHO through Facilitators, allowing Aave version 3 (V3) users to mint GHO against their collateral. If accepted, GHO would make Aave Protocol stablecoin borrowing more competitive and provide extra money for the Aave DAO. Through decentralized governance, the Aave DAO will also be able to change GHO’s interest rate. The plan is presently pending, with voting set to begin later today and continue through July 14. GHO is powered by Facilitators, which are a hybrid of the Aave V3 Ethereum Pool Facilitator and the FlashMinter Facilitator. The Aave V3 Ethereum Pool Facilitator allows users to borrow GHO by depositing collateral in the V3 Ethereum mainnet pool, while the FlashMinter Facilitator allows users to flash mint GHO without requiring collateral. The proposal also contains a plan to deploy Staked Aave (stkAAVE) tokens to lower GHO stablecoin users’ borrowing expenses. Following the introduction of GHO on Ethereum, Aave Companies is also exploring a multi-chain approach.
For the next five years, the UK Treasury has recommended simpler restrictions for digital bonds and equities. The new “sandbox” for distributed ledger technology (DLT)-based innovative securities might make markets more efficient, transparent, and robust. The Treasury thinks that the use of digital assets has the potential to change financial markets and intends to implement new laws. The exemption will include digital shares, bonds, and money market products, but not derivatives or unbacked cryptocurrency. The government of the United Kingdom has been striving to make the nation a crypto asset center, with suggestions for stablecoins, crypto promotions, and a digital pound. The EU’s historic Markets in Crypto Assets Regulation is expected to go into force next year, and a pilot project to test DLT securities trading is already in place.
