Aave Plans Price Increase as their Stablecoin Goes Live on Ethereum Testnet

Aave: the world-leading assets supply and borrowing company has concluded plans to release its first stablecoin. According to reports, the coin is called GHO and is set to run on the  ETH Goerli testnet. Before the launch, the company has also made some sensitizing moves to educate the public on what to expect from the newly introduced GHO. 

Aave explained its operations in different publications as a 100% decentralized, collateralized service. They also mentioned that the GHO would be minting through Aave Protocol. It is also understood that the whole minting system is designed to ensure that the price of the GHO oracle is measured equal to the USD. The company also went further to talk about the decentralized and collateralized features of the GHO system.

Also in their statement, they made it clear that the introduction of GHO into the stablecoin space will guarantee secured cash deposits. This coin is also expected to be fully involved in the company’s original borrowing operations. They stated that in this case, prospective borrowers would be expected to provide more collateral than what they borrow, thereby serving as insurance to the loan.

How the GHO will be Minted

In the published statement by the company, they stated that the GHO would be supplied as collateral on the Aave platform. Meanwhile, there have been some influencing factors that have been picked in the whole process. The obvious influencers of this new stablecoin are the Aave System governing council and Aave DAO. 

Analysts have described many advantages of the GHO, including its ability to give owners so much power, like deciding the coin’s supply, risk boundaries, and rate. It was also revealed that Aave DAO would have important roles to play in this case; it is meant to act as a facilitator to the entire minting and burning process of the GHO. It is also reported that the GHO has already been audited by many auditing firms to ascertain its credibility; they are currently in their final stage.

In a bid to make the coin widespread, Aave released the GHO on the Eth Goerli testnet. This latest development has found its way to the tables of some experts in the industry, and they have deliberated and released some interesting facts about the Aave GHO stablecoin, which has been circulating in the media space for some time now. 

On the other hand, attention has also been drawn to the resemblance between GHIST and GHO tokens. The company has also taken note of this and has addressed it accordingly. They made it clear through different articles and noted the difference between the two tokens. According to some of the articles we stumbled upon, the company explained that while the GHO works on an Aave protocol, the GHST runs on the NFT Gaming protocol.

The Anticipated Price Increase of Aave 

Even when the GHO was recently announced, the price of AAVE has been said to have received a boost. But it has yet to be clear what might have led to such development. As of the time of this report, the price of AAVE had risen to $92 from its former $78. Analysts have ascribed this development to the general adjustment of the cryptocurrency market. 

They believe that the previous crash in the price of crypto had a lot to do with the current increase in the price. There have also been reports from some quarters stating that a discount pattern may be introduced on the GHO. The source stated that before it can be made possible, a STKAAVE is required.

It was revealed that there is a need for a snapshot on the Flashminter, and Ethereum V3 Facilitator, respectively. According to one of the many statements by Aave to this effect, there is a need for a snapshot, which will send approval to the facilitators on behalf of the GHO.

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