Aave’s GHO (GHO) stablecoin is taking a step closer to an Ethereum mainnet launch, as the developer proposed two key features that would benefit holders while keeping the token’s stability intact. The V3 Ethereum Facilitator and the FlashMinter Facilitator, both of which were approved in outline earlier, will allow for GHO lending against collateral deposits and a variant of flash loans, respectively.
GHO has been available on the Ethereum blockchain’s Goerli testnet since February, where it has functioned without encountering any major bugs, said the developer, Aave Companies. The FlashMinter Facilitator will allow users to borrow GHO and repay it in a single transaction and have an initial capacity of 2 million GHO on zero fees.
GHO was first proposed in June last year as a decentralized stablecoin backed by a basket of cryptocurrencies chosen at the discretion of Aave users, while borrowers would continue earning interest on their underlying collateral. The token is expected to generate additional revenue for the Aave decentralized autonomous organization by sending 100% of interest payments on GHO borrows to the DAO, the proposal said at the time. It will initially be on Ethereum, and is expected to be issued on other blockchains based on community demand and voting, according to the proposals.