Certainly, there is movement on the side of Aave's governance. A few days ago, Marc Zeller of the Aave Chan (ACI) initiative unveiled the plans of the AAVENTOMICS, an evolution that aims to transform the AAVE token. In parallel, the Aave Chan initiative made another proposal this time involving the GHO, the stablecoin issued by the Aave protocol.
The key points of this article:
The Aave Chan Initiative proposed an evolution of the Stablecoin Gho, aimed at creating a derivative called SGHO, offering a return via the Aave Saving Rate.
The SGHO promises to be a low -risk product, drawing its yields from the income generated by the Aave protocol, without deposit or withdrawal.
GHO: Le Stablecoin Made in Aave
In July 2023, the Lending Aave protocol once again diversified its products. Indeed, he has launched his own stablecoin entitled Gho.
Just under two years after its launch, it displays a capitalization of more than $ 200 million And is deployed on several blockchains. It makes him the 20th largest stablecoin of the crypto ecosystem. Like most decentralized stablecoins, the GHO is based on a mechanism of over-collateralization. This means that users can issue it in exchange for filing a cryptocurrency warranty. In practice, all the assets supported by the Aave V3 deployed on Ethereum can serve as a warranty.
Aave Chan Initiative offers an evolution of the GHO
Tuesday, March 4, the Aave Chan Initiative, known for its involvement in Aave's governance submitted a proposal for evolution of the GHO. In fact, this proposal aims to Create a GHO derivative called Sgho as well as defining a Savings rate entitled Aave Saving Rate (ASR). At the end of 2023, the ACI had already introduced the Stkgho. This allowed GHO holders to drop them off in the Safety Aave Module to obtain AAVE token yields. Thus, this diversified the offer of the Safety Modula, in addition to the Aave token. However, with the advent of the aavenomics and the transfer of the Safety Modle to Umbrella, the Aave Chan Initiative sees an opportunity to review the integration of GHO into the protocol.
SGHO a new low -risk savings product
Thus, in ACI's proposal aims to create the SGHO, a version of the GHO which incorporates a concept of yield. To do this, GHO holders can Place their tokens to get Sgho and enjoy the Aave Saving Rate. Therefore, the SGHO is none other than yield-bearing asset namely a productive performance asset.
“By depositing GHO in Sgho, users will win the AAVE savings rate by holding an ERC-20 reception token accumulating value over time and easily integrable with other protocols. »»
For their part, the yields will come from income generated by the Aave protocol. The objective of this derivative is to «present the lowest risk profile». Thus, this is part of the wider will of the AAVENTOMICS to propose a redistribution of income from the protocol to holders of its native token. Namely the Aave and the GHO. According to ACI, the SGHO has several advantages. On the one hand, he would automatically compose interest. In addition, that would not imply rechyprothecationnamely that the deposited GHOs are not reused or loaned by the protocol. Indeed, the yields would not come from the remobilization of GHOs, but only from income from the Aave protocol. And this, without deposit or withdrawal costs. According to the first responses to the proposal, it seems to receive a positive reception from the community. However, if validated by the community via the Temperature Check, the proposal must then be subject to the vote via the governance module. For its part, the protocol Aave should experience a major development via the launch of its V4 during the year. This aims in particular to make capital more accessible, in particular via a unified layer of liquidity. It also introduces new risk management methods for savers and borrowers.