Aave Introduces Proposal to Launch GHO On Ethereum Mainnet

Published 11/07/2023, 14:15
Updated 11/07/2023, 14:45
© Reuters.  Aave Introduces Proposal to Launch GHO On Ethereum Mainnet
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  • Aave has launched a Governance Proposal to launch its decentralized stablecoin GHO on the Ethereum Mainnet.
  • If approved, users will be able to mint GHO using their collateral.
  • At press time, AAVE was trading at $71.46 after a price increase of 1.30%.

Aave published a Governance Proposal yesterday to launch its decentralized stablecoin GHO on Ethereum Mainnet. In the proposal, the team suggested that GHO be introduced to Ethereum through the Aave V3 Facilitator and FlashMinter Facilitator.

The Aave V3 Ethereum Pool Facilitator would allow depositors to borrow GHO against their collateral which is deposited in the V3 Ethereum Mainnet Pool. Meanwhile, FlashMinting, which builds off of the functionality of a Flashloan, will enable users to mint GHO and repay the loan in a single transaction.

This move from Aave aims to revolutionize the Aave ecosystem and boost the competitiveness of stablecoin borrowing on the Aave Protocol. If approved, users will be able to mint GHO using their collateral, while the Aave DAO will receive 100% of the interest payments made on GHO borrows, augmenting its revenue.

CoinMarketCap indicated that AAVE’s price was able to increase by about 1.30% over the past 24 hours, which left the crypto trading hands at $71.46 at press time. As a result, AAVE was trading right below its daily high of $71.70. The crypto was also up 0.78% against Bitcoin (BTC) and was able to outperform Ethereum (ETH) by 0.72%.

Daily chart for AAVE/USDT (Source: TradingView)

From a technical perspective, AAVE’s price was resting on the crucial support level at $69.17 after it lost the support of the 9-day EMA line over the past 48 hours. If the altcoin’s price does not close today’s trading session above the technical indicator, then it may be at risk of dropping to the next key support level at $65.04 in the following 48 hours.

On the other hand, a close above the 9-day EMA line today may give AAVE the support needed to overcome the next major resistance level at $74.17 in the coming few days. Continued buy pressure at this point may result in AAVE rising to $81.30 in the following 48 hours.

Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.

The post Aave Introduces Proposal to Launch GHO On Ethereum Mainnet appeared first on Coin Edition.

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