- Aave is now part of the DeFi protocol space that has released their native stablecoins.
- The GHO stablecoin is not live on Ethereum’s testnet.
- The GHO mainnet has not yet been launched, but this is subject to community approval.
Leading crypto decentralized finance (DeFi) protocols, Aave, has successfully deployed its native stablecoin GHO on Ethereum’s Goerli testnet. Aave is a prominent crypto lending platform. The deployment of its stablecoin occurs as MakerDAO, issuer of one the top stablecoin DAIs, announces plans to launch crypto lending platforms.
Following the deployment of GHO on the Ethereum testnet, potential adopters and developers of the stablecoin can access the stablecoin’s codebase and test how it works before the stablecoin is released to the general public on Ethereum.
While the testnet can be tested, launch of the GHO Mainnet requires community approval and discussions. This is done through the Aave DAO. It is responsible for Aave governance via proposals and voting. Since August last year, when the Aave community supported its creation, the DeFi community has eagerly awaited the launch of the GHO stablecoin.
Stiff competition from Maker’s DAI stablecoin
Aave has had a great time in crypto borrowing and lending, but its involvement with stablecoin means that it will be up against rival DeFi protocols like Maker, which have issued their own stablecoins.
Currently, MakerDAO’s DAI stablecoin is the largest decentralized stablecoin. Curve, a renowned DeFi protocol, is also creating its native stablecoin called crvUSD.
However, Aave’s top position within the DeFi space with a total value locked (TVL) of $7.15 billion This may give it an extra boost with the stablecoin initiative.