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

Facilitators, tasked with generating and burning $GHO tokens, are subject to a community-defined limit known as a bucket size, which cannot be exceeded without a vote.

Approval for FlashMinter Facilitator and Aave V3 Ethereum Facilitator was previously announced alongside plans to introduce $GHO on Ethereum. The current proposal consolidates parameters previously addressed separately.

Upon approval, the community can mint $GHO against their collateral, with all interest generated from $GHO borrowing accruing to the DAO Treasury, subject to decentralized approval for interest rate adjustments.

The financial framework of $GHO will be decentralized and managed by Aave DAO. Aave V3 Ethereum Pool Facilitator will allow borrowers to obtain $GHO against collateral deposited in the Mainnet Pool, with parameters including a 1.5% interest rate and a 30% discount rate, limiting the Facilitator's Bucket Size to 100M GHO.

FlashMinter Facilitator enables users to mint and repay $GHO in a single transaction, similar to Flash Loans but for minting rather than borrowing, aiming to maintain its peg while enhancing arbitrage efficiency.

Temp Check's approval, with 679,000 votes in favor, confirms the initial Bucket Size of 2,000,000 GHO with no facilitator fees, incentivizing early-stage arbitrage.

In summary, actions related to $GHO include enrolling Aave Ethereum Facilitator, configuring $GHO as a discounted token for borrowing rates, listing $GHO as a borrowable asset, deploying its ERC 20 token under Aave DAO control, and deploying FlashMinter as the second Facilitator.

DAO voting will commence soon, with results to be posted on Aave's official website.