• Aave has deployed its native GHO stablecoin on Ethereum’s Goerli testnet.
• The launch of the mainnet for GHO will depend on community discussions and approval through the Aave DAO.
• GHO will face stiff competition from other DeFi protocols like Maker’s DAI stablecoin and Curve’s crvUSD.
Aave Deploys GHO Stablecoin
Aave, a leading crypto decentralized finance (DeFi) protocol, has successfully deployed its native stablecoin GHO on Ethereum’s Goerli testnet. Potential adopters and developers of the stablecoin can access the codebase and test how it works before the stablecoin is released to the general public on Ethereum.
Launch of Mainnet Dependent on Community Discussions
The launch of the GHO mainnet is however yet to be launched awaiting community discussion and approval via Aave DAO which is in charge of Aave governance through proposals and voting. The DeFi community has been eagerly waiting for the GHO launch since it was proposed by Aave back in August last year.
Competition from Other DeFi Protocols
While Aave has enjoyed a good time in the crypto borrowing and lending industry, its involvement with stablecoins means it will face stiff competition from rival DeFi protocols like Maker that have issued their own native stablecoins such as DAI. Currently, MakerDAO’s DAI is one of the largest decentralized stablecoins while Curve is also developing its own crvUSD token.
Aave’s Position in DeFi Space
Despite this competition, Aave’s top position within the DeFi space with a total value locked (TVL) of $7.15 billion may give it an advantage over other competitors when launching its own native stablecoin project.
Aave’s deployment of its nativeGHOstablecoinsonEthereum’sGoerlitestnetprovidespotentialadoptersanddeveloperswiththeopportunitytotestthecodebasebeforeitislaunchedtothepublicontheEthereummainetnetwork.However,thelaunchofthemainnetwilldependoncommunitydiscussionsandapprovalthroughtheAavedaoandwillfacecompetitionfromotherDeFiprotocolsliketheMakerdaiandCurvecrvusdtokens.Despitethiscompetition,AavespositionintheDeFispacemaygiveitanadvantagewhenlaunchingitsownnativestablecoiningproject