GHO

Halal Rating :
Uncomfortable
Contract: 0x40D16FC0246aD3160Ccc09B8D0D3A2cD28aE6C2f
Last Price $1.0 Last updated:
Rank 3309
1D Change 0.01 %
Market Cap -
Circulating supply 0
Maximum supply None

Crypto Overview

Categories
  • Stablecoin
  • Ethereum Ecosystem

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.

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