Aave has joined the space of DeFi protocols that have released their own native stablecoins.
The GHO stablecoin is not live on Ethereum’s testnet.
The GHO mainnet is however yet to be launched awaiting community discussion and approval.
Leading crypto decentralized finance (DeFi) protocols, Aave, has successfully deployed its native stablecoin GHO on Ethereum’s Goerli testnet. Aave is a leading crypto lending platform and the deployment of its stablecoin comes as MakerDAO, the issuer of one of the leading stablecoin DAI, announced plans to launch a crypto lending platform.
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.
However, while the testnet is ready for testing, the launch of the GHO mainnet depends on community discussions and approval through the Aave DAO which is in charge of Aave governance through proposals and voting. The DeFi community has been eagerly waiting for the GHO stablecoin launch since the Aave community overwhelmingly supported its development in August last year.
Stiff competition from Maker’s DAI stablecoin
While Aave has enjoyed a good time in the crypto borrowing and lending industry, its involvement with stablecoin means it will face stiff competition from rival DeFi protocols like Maker that have issued their own native stablecoins.
Currently, MakerDAO’s DAI stablecoin is the largest decentralized stablecoin. Curve, another renowned DeFi protocol is also developing its native stablecoin dubbed crvUSD.
However, Aave’s top position within the DeFi space with a total value locked (TVL) of $7.15 billion may give it a jumpstart with the stablecoin project.