which is tied to the dollar, has received support from the AAVE community.
User activity on the Aave protocol has reportedly increased to a new annual high, according to on-chain data analytics platform IntoTheBlock.
FUD surrounding GHO Stablecoin?
There has been significant FUD and never-ending concerns about the sustainability of the decentralised finance system since the first DeFi boom last year and the ensuing problems that befell the financial system.
One of the biggest loan platforms on DeFi, Aave, is recording more and more encouraging activity on its platform. Over 1,860 addresses made transactions in just a few days in relation to the voting process for the launch of GHO stablecoin on Aave DAO, according to data from IntoTheBlock's report.
The AAVE token also hit a new high for the year after rising by 114% from the trough. However, the token has not yet completed the 2021 numbers and has been volatile even after the vote to establish the new stablecoin was successful.
The yield of Aave generates GHO Stablecoin.
The recently approved stablecoin GHO will operate like other algorithmic stablecoins, which means that when users deposit $1 in cryptocurrency as collateral, exactly $1 worth of the GHO token will be minted.
Interest will still be paid to users on the provided collateral. The DAO will receive the stablecoin's interest payments, which will bring in money for the community and basically let it fund its treasury.
Voters who approved the plan to construct GHO committed more than $500 million worth of AAVE in support of Aave's Decentralized Autonomous Organization (DAO), which received 99.9% of the vote. Since it received almost universal acceptance, the stablecoin will shortly be released.
