DeFi

Aave To Launch Public Testnet For Its Stablecoin GHO In January

Key Points:

Stani Kulechov, founder of Aave, said on Twitter that the internal testnet for GHO, the platform native stablecoin, is going well, and the protocol will release a public testnet at the beginning of January.
In addition, Aave will deploy V3 on Ethereum in January as wel, it plans to initially deploy the stablecoin on V3 instead of V2
Furthermore, Aave will grant Facilitator the ability to cast and destroy GHO without the need for trust, and a guiding framework for applying for this authority will be given in the future.

GHO, Aave’s native stablecoin, has set an internal testnet date for early next year. This is a breakthrough for the DeFi platform when the stablecoin battle of platforms is gradually becoming fierce.

Stani Kulechov, the founder of Aave, said on Twitter that the internal testnet for GHO is going well, and the protocol will release a public testnet at the beginning of January.

In addition, Aave will deploy V3 on Ethereum in January as well.

As Coincu reported, Aave released an update on the development of its stablecoin GHO, saying that after the DAO voted in favor of deploying a new Aave V3 on Ethereum, it plans to initially deploy the stablecoin on V3 instead of V2. The proposed approach will be discussed in the community.

Liquid fiat assets do not back GHO, but it isn’t an algorithmic stablecoin like Terra’s UST. This stablecoin will have a similar operating mechanism as Maker’s stablecoin Dai (DAI). Users will need to deposit crypto assets as collateral to generate GHO; the collateral will still be profitable during the lockdown.

Furthermore, Aave will grant Facilitator the ability to cast and destroy GHO without the need for trust, and a guiding framework for applying for this authority will be given in the future.

GHO was first announced by Kulechov in early July, promising as a target for other DeFi platforms that could follow this movement.

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Harold

Coincu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.