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• Aave has joined the house of DeFi protocols which have launched their very own native stablecoins.
• The GHO stablecoin will not be dwell on Ethereum’s testnet.
• The GHO mainnet is nevertheless but to be launched awaiting group dialogue and approval.

Leading crypto decentralized finance (DeFi) protocols, Aave, has efficiently deployed its native stablecoin GHO on Ethereum’s Goerli testnet. Aave is a number one crypto lending platform and the deployment of its stablecoin comes as MakerDAO, the issuer of one of many main stablecoin DAI, introduced plans to launch a crypto lending platform.

Following the deployment of GHO on the Ethereum testnet, potential adopters and builders of the stablecoin can entry the stablecoin’s codebase and check the way it works earlier than the stablecoin is launched to most people on Ethereum.

However, whereas the testnet is prepared for testing, the launch of the GHO mainnet relies upon on group discussions and approval via the Aave DAO which is answerable for Aave governance via proposals and voting. The DeFi group has been eagerly ready for the GHO stablecoin launch for the reason that Aave group overwhelmingly supported its growth in August final 12 months.

Stiff competitors from Maker’s DAI stablecoin

While Aave has loved an excellent time within the crypto borrowing and lending business, its involvement with stablecoin means it would face stiff competitors from rival DeFi protocols like Maker which have issued their very own native stablecoins.

Currently, MakerDAO’s DAI stablecoin is the biggest decentralized stablecoin. Curve, one other famend DeFi protocol can be creating its native stablecoin dubbed crvUSD.

However, Aave’s prime place throughout the DeFi house with a total value locked (TVL) of $7.15 billion could give it a jumpstart with the stablecoin venture.