Aave Companies, the firm behind the decentralized finance project (defi) Aave, has announced the launch of a stablecoin called GHO on the Ethereum testnet network Goerli. The codebase is available on Github and has undergone revisions by Open Zeppelin, Sigmaprime and ABDK.
Aave invites programmers to test GHO before Mainnet distribution
On Thursday, Aave Companies announced the launch of its initial stablecoin GHO on the Ethereum Goerli testnet. The company also released its open source codebase on Github. The developers of Aave invite programmers and potential integrators to start testing GHO as it prepares for deployment on the Ethereum network.
Three audits conducted by Open Zeppelin, Sigmaprime and ABDK focused on the distribution of GHO. When launched on the Ethereum network, GHO will be similar to Makerdao’s DAI token in that it will be over-secured and pegged to the US dollar. Aave version 3 (V3) does not allow stablecoin lending. The community is asked to consider adding a second facilitator, “Flashminting,” at launch to address this issue.
Flashminting will enable Aave users to create GHO in a single transaction, similar to flash lending, but without borrowing from a pool. A revised codebase for the Flashminter Facilitator software is available, and the decision to include it will be put to a vote among the Aave community through the Aave Decentralized Autonomous Organization (DAO). Aave DAO will manage the control of the GHO facilitator. The team says that before the official GHO mainnet launch, there will be further testing and research.
Changes are required to STKAAVE to enable the implementation of GHO’s discount rate, and a snapshot needs to happen for Ethereum V3 Facilitator and Flashminter Facilitator. “A snapshot will then arise to illuminate these as the first two facilitators of GHO,” according to Aave. The company has also introduced a bug bounty and is asking key contributors to the DAO to start discussing the framework for introducing new facilitators.
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Jamie Redman
Jamie Redman is the news editor at Bitcoin.com News and a financial technology journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
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