Aave founder: After the introduction of stability modules and other improvements in the next few months, GHO will resume anchoring
2023/08/17 09:36
According to Odaily Star Daily, since its launch in July, the new stablecoin GHO trading price of Aave has been between $0.97 and $0.99, lower than the expected price of $1.
Benjamin Levit, co-founder and CEO of stablecoin research company Bluechip, believes that this is because GHO lacks a proper redemption mechanism and there is insufficient demand for the token. He said, "Anchoring has not been restored through arbitrage because GHO does not have an actual arbitrage mechanism to create demand."
Stani Kulechov, founder of Aave, defended GHO and believes that after the introduction of GHO stability module and other improvements in the coming months, GHO will restore its anchoring. The GHO Stability Module (GSM) allows users to use other stablecoins as collateral to mint GHO. GHO minted through GSM can be redeemed 1:1 for the underlying collateral, creating arbitrage opportunities for some token supplies.
Kulechov recently tweeted, "The focus of the current model is the growing debt in GHO, which is growing quite well (nearly 20 million). I think the focus on the dollar anchor should come after this."
According to Etherscan data, the Aave native stablecoin GHO has exceeded 20 million in circulation since its launch on the Ethereum mainnet on July 15, and has reached 22,462,715 as of now.
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