Aave's GHO Stablecoin To Launch On Ethereum Mainnet With Pivotal Features

The Aave (CRYPTO: AAVE) lending protocol's stablecoin, GHO (CRYPTO: GHO), inches towards a launch on Ethereum's (CRYPTO: ETH) mainnet with the introduction of two key features proposed by the developer, Aave Companies.

These features aim to enhance user benefits while maintaining the coin's stability.

The GHO stablecoin, in its testing phase since February on Ethereum's Goerli testnet, has performed without significant issues.

In a recent governance post, Aave Companies introduced the V3 Ethereum Facilitator and the FlashMinter Facilitator, designed to allow GHO lending against collateral deposits and to enable flash loans or zero-collateral loans respectively.

"These facilitators, capable of creating and annihilating GHO tokens up to a certain extent, will let depositors borrow GHO against their collateral placed in Aave V3's Ethereum mainnet pool," the developer explained.

The broader Aave community previously approved both facilitators.

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Detailed proposals are currently in discussion, with a vote planned for the near future.

The FlashMinter Facilitator will give users the ability to borrow GHO and repay within a single transaction, with an initial capacity of two million GHO at zero fees.

GHO was first suggested in June of last year as a decentralized stablecoin supported by a selection of cryptocurrencies decided by Aave users.

Borrowers will continue to accrue interest on their collateral.

The GHO token is projected to generate extra income for the Aave decentralized autonomous organization (DAO), with all interest payments on GHO borrows channeled to the DAO.

The token will initially launch on Ethereum, but future releases on other blockchains may be based on community demand and voting, according to the proposals.

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