AAVE token on-chain activity reached a yearly high, which is consistent with the most recent 114 percent price increase on the market. The launch of the GHO stablecoin is the primary cause of the increased on-chain activity and excellent market performance.
AAVE’s GHO proposal recently received the green signal
The most current proposal, which has not yet been adopted through the AAVE Improvement Proposal, states that the AAVE network decided to issue the native blockchain-based stablecoin GHO.
Users will be able to borrow GHO against other cryptocurrency assets and earn interest.
Loans taken out in GHO will have interest added to them by the protocol itself, and payments will be sent back to the Aave DAO.
According to reports, AAVE intends to link GHO to both the USD and the range of cryptocurrencies placed on the platform. The stablecoin’s native interest rate will be set by the DAO that created it.
The network has been waiting patiently for the native stablecoin, which will serve as a link between the platform and other protocols.
The voting period for the proposal’s snapshot ran from July 28, 2022, through July 31, 2022. Over 99.99 percent of the 1,793 voters approved the plan, ensuring that it passed with flying colors.
The DAO will now be in charge of overseeing the stablecoin’s generation because the proposal has been accepted. DAO members who have more than 501k AAVE cast a vote in favor of the motion.
Following the proposal’s approval, GHO borrowers will be allowed to continue earning interest on the specified collateral.
The token is now moving in a local downtrend, as shown by the asset’s daily chart, which also shows a price slump of 6.7% over the previous day. But the token has pumped almost 114% from its bottom. It is currently trading at $91.16.