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

Facilitators, whether protocols or entities, are responsible for burning and generating GHO tokens, with a community-defined limitation known as a bucket size that cannot be exceeded without a vote.

The FlashMinter Facilitator and Aave V3 Ethereum Facilitator have already received approval and will be consolidated under this proposal, which also consolidates various parameters previously discussed separately.

Upon approval, the community will be able to mint $GHO against their collateral, with the DAO Treasury receiving all generated interest from $GHO borrowing. Interest rates are subject to decentralized approval by the DAO.

The financial management of $GHO will be decentralized and overseen by Aave DAO.

The Aave V3 Ethereum Pool Facilitator will allow borrowers to access $GHO against their collateral deposited in the Mainnet Pool, with parameters including a 1.5% interest rate and a 30% discount rate, and a bucket size limit of 100M GHO.

The FlashMinter Facilitator enables users to mint and repay $GHO in a single transaction, similar to Flash Loans but for minting rather than borrowing, promoting efficient arbitrage while maintaining its peg.

The initial bucket size for the FlashMinter Facilitator has been set at 2,000,000 GHO with no facilitator fees initially to encourage arbitrage.

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

DAO voting will commence soon, with results displayed on Aave's official website.