GHO
Crypto Overview
Overview
GHO is a decentralized, overcollateralized stablecoin native to the Aave Protocol, launched in July 2023. It is designed to maintain a value of $1 USD through various collateralization mechanisms.
Purpose and Utility
GHO's primary purpose is to serve as a stablecoin within the Aave ecosystem, allowing users to mint GHO by depositing collateral assets. The token is intended to facilitate transactions and provide stability in decentralized finance applications.
Business Model
GHO operates through a system where users can mint the stablecoin by providing collateral at a ratio higher than 100%. The protocol generates revenue through interest rates charged on GHO borrowing, which is distributed to the Aave DAO.
Real-World Adoption
As of early 2024, GHO has seen limited adoption, with a market cap under $20 million and daily trading volumes around $2-3 million. The token is primarily used within the Aave ecosystem for lending and borrowing operations.
Development Activity
The project is actively maintained by the Aave team, with regular updates and improvements to the protocol. The development is transparent and can be tracked through public GitHub repositories.
Token Distribution
GHO is minted based on user demand and collateral deposits, rather than having a fixed supply controlled by founders. This eliminates concerns about founder enrichment through token sales.
Crypto Impact
To assign a comfort level investing in GHO from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to GHO.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.