Aave has proposed the launch of its native stablecoin, $GHO, on the Ethereum mainnet, pending majority approval from the Aave DAO. If passed, $GHO will be backed by two Facilitators: the FlashMinter Facilitator and the Aave V3 Ethereum Facilitator.

Essentially, a Facilitator is tasked with burning and generating GHO tokens, subject to a community-defined limit known as the bucket size. Both the FlashMinter Facilitator and the Aave V3 Ethereum Facilitator have already received approval, as part of the plan to introduce GHO on Ethereum. This proposal consolidates various parameters that were previously managed separately.

Once approved, community members will be able to mint $GHO against their collateral, with all interest generated from borrowing allocated to the DAO Treasury. The financial framework of $GHO will be overseen by Aave DAO in a decentralized manner.

The Aave V3 Ethereum Pool Facilitator will enable borrowers to obtain $GHO against collateral deposited in the Mainnet Pool, with parameters including a 1.5% interest rate and a 30% discount rate. The FlashMinter Facilitator allows users to mint and repay $GHO in a single transaction, promoting efficiency and maintaining its peg.

Temp Check's approval, with 679,000 votes in favor, confirms the initial Bucket Size of 2,000,000 GHO with no fees for Facilitators. $GHO's actions include enrolling the Aave Ethereum Facilitator, configuring it as a discounted token for borrowing rates, listing it as a borrowable asset, deploying its ERC 20 token, transferring control to Aave DAO, and deploying the FlashMinter as the second Facilitator.

Voting on the proposal will soon commence, with results to be announced on Aave's official website.