Aave releases technical details on protocol native Stablecoin GHO
Aave • November 08, 2022
A technical document on Aave's future GHO stablecoin has been made available by Aave Companies along with the results of the first security audit by Open Zeppelin. The stablecoin GHO, is an overcollateralized dollar-backed stablecoin that has been approved by the AAVE DAO on the 31st of July with almost 100% support. The security audit found no critical or high-severity bugs in the codebase.
Aave governance selects the entities known as facilitators, who are in charge of minting and burning GHO tokens. The GHO tokens, which are backed by excess collateral, will each be used in accordance with a distinct plan by the facilitator. The main goal is to improve AAVE as a platform to achieve higher capital efficiency, a common critique against overcollateralized protocols. When a user repays his GHO loan or is liquidated, interest accrues to the Aave DAO treasury. The repaid GHO is burned and the circulating supply is reduced.