AAVE, one of the largest DeFi lending platforms, just passed a highly anticipated proposal to create a stablecoin called $GHO.

$GHO will be a fully decentralized, overcollateralized stablecoin, similar to $DAI.

It has the following features:

• Decentralized (via the DAO)
• Overcollateralized by assets supplied by depositors, which continues to earn yield
• Assets are backed by the collateral available on AAVE

In other words, users of AAVE can now mint GHO, and borrowers of GHO can still earn interest (with their deposited collateral) at the same time.

You can read more about GHO over here: DeFying The Bear – AAVE Launches New Stablecoin, MakerDAO Votes For $100M Loan To US Bank

At the time of writing, $AAVE is trading for $97.64, up 3% intraday.

[Editor’s Note: This article does not represent financial advice. Please do your own research before investing.]

Featured Image Credit: The Market Periodical

Also Read: What Is Aave And How It Enables Anyone To Lend And Borrow Cryptocurrencies