GHO

StatisticalMan

>In a traditional bank system, when a loan is issued, the creation of fiat currency is backed by something real: assets like land, buildings, or productive resources. These assets act as collateral, and if the loan defaults, the physical property is liquidated, removing currency from circulation. This creates an external anchor that allows fiat currency to have a reference point - something tangible or meaningful in the real world. No that is not universally true. There are plenty of uncollateralized loans for example signature loans or credit cards. >Now, consider GHO or USDS: these are digital tokens, and while they may be minted as part of a loan, they do not establish a meaningful connection to any real-world assets or goods USDS supports minting money based on real world assets. Every time you keep moving the goal posts you are still wrong.

Life_Ad_2756

While it’s true that platforms like Aave and the issuance of stablecoins like GHO or USDS (formerly DAI) can create new units tied to loans, this still doesn't address the key issue: lack of an external reference point. Here’s why: In a traditional bank system, when a loan is issued, the creation of fiat currency is backed by something real: assets like land, buildings, or productive resources. These assets act as collateral, and if the loan defaults, the physical property is liquidated, removing currency from circulation. This creates an external anchor that allows fiat currency to have a reference point - something tangible or meaningful in the real world. Now, consider GHO or USDS: these are digital tokens, and while they may be minted as part of a loan, they do not establish a meaningful connection to any real-world assets or goods. The creation of these tokens doesn’t "anchor" them to anything tangible in the way that fiat money is tied to real-world property, land, or debt backed by actual goods or services. These stablecoins are merely digital representations of value within a closed system. When they are destroyed upon repayment, the only thing that changes is the digital ledger; no real-world property or collateral is being "redeemed" or taken out of circulation in any physical sense. To put it simply: creating GHO or USDS as part of a loan system doesn’t make them money in the traditional sense because it doesn’t connect them to real-world, tangible assets. Just like how Monopoly bills can be created and destroyed within the confines of a game without any reference to real-world value, the minting and burning of these stablecoins doesn’t anchor them to anything outside their own system. They remain digital markers in a closed-loop system, not money that can be used to measure or purchase real goods or services. The key difference between cryptocurrency systems like this and real-world money is that cryptocurrency doesn’t have a clear, external reference point to measure its value against, unlike fiat, which is tethered to real-world collateral.

StatisticalMan

>Let's me educate you. In a real-world loan system, when a bank issues a loan, it creates new fiat currency units that enter circulation. This exists in aave as well. GHO (a USD based stable coin) can be minted into existance as part of a loan. When the loan is repaid it is destroyed. Similar system exists for USDS (formerly called DAI). So thank you for proving cryptocurrencies are money (by your asinine definition).

coinfeeds-bot

tldr; Market makers have sent $100M in stablecoins to exchanges, increasing liquidity amid a crypto price slide. Notable deposits include Wintermute's $42M USDT and Flow Traders' $34.12M. These inflows may signal potential buying opportunities as stablecoin reserves on exchanges remain significant. The trend suggests a reversal with stablecoins returning to exchanges, possibly indicating buying pressure. USDT and USDC saw the largest net inflows, while FDUSD and GHO also showed notable activity. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.

leavesmeplease

Seems like the buy-back could definitely give Aave's price a nice boost if executed well. It's interesting to see how GHO is being integrated into various protocols too. Just goes to show how the ecosystem is evolving. People should keep an eye on those market movements.

coinfeeds-bot

tldr; The Aave protocol is poised to initiate buybacks of its native token once the GHO stablecoin's market cap gains an additional $40M, aiming to reach a 175M token target. Currently, GHO's supply is at 135M tokens, following significant growth in August. The buyback strategy is expected to potentially increase the price of Aave's native token. GHO has been integrated into major protocols like Curve, Balancer, and Uniswap V3, and is used in yield farming. The stablecoin is designed to play a significant role in the Aave ecosystem, contributing to Aave DAO's revenues through lending and liquidity pools. Despite a slow start and challenges, including losing its $1 peg, Aave has implemented more conservative borrowing procedures to ensure sustainable growth of GHO's supply. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.

Ok_Carpenter_4720

That’s a bold move by Aave Labs, leveraging BlackRock's BUIDL shares to stabilize GHO could really set them apart in the stablecoin space. If this proposal goes through, it could not only strengthen GHO but also open doors for more real-world asset integration in DeFi.

coinfeeds-bot

tldr; Aave Labs has proposed an update to its GHO Stability Module, involving the use of BlackRock’s tokenized fund BUIDL’s shares to maintain the dollar peg of its stablecoin GHO. The proposal suggests exchanging users’ USD Coin (USDC) for BUIDL shares when minting GHO, with the tokens held in a smart contract until redemption. BUIDL, valued at $1 per token with over $502 million in assets, offers a new yield source and partnership opportunities. This move aims to boost GHO’s market cap and maintain its stablecoin peg, leveraging BUIDL’s liquidity and USDC integration. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.

jawni

Maybe you were right but didn't really have much reasoning besides that you didn't like MKR and that AAVE released GHO... which would make sense if had released 2 months ago, but it's been out for a year. Seems like you got lucky on the timing more than anything. Shit, you better hope MKR doesn't start performing well, that would also invalidate the rest of your theory.

Abanikandy

This is not news, this will continue to trend down as more transparent stablecoins are issued (using services like Chainlinks Proof of Reserve - like USDP (paxos), USDC (circle), GHO (AAVE), and new major bank stables are launched).

CointestMod

#Aave Pro-Arguments Below is a Aave pro-argument written by cryotosensei. > 1. AAVE has a novel flash loan concept that allows users to lend and borrow crypto assets from each other without the need for third party intermediaries. These flash loans are hassle free as they do not require users to submit collateral in advance. They also enable users to borrow from reserve liquidity pools and subsequently pay back their loans plus interest within the same transaction. This enables users to perform arbitrage trades. AAVE also offers a world of possibilities; at least 31 cryptocurrencies are available for borrowing and lending. > > 2. Borrowing and lending of cryptocurrencies with AAVE is completely anonymous - a plus point for people who are keen to protect their personal data and privacy. > > 3. The smart contracts on AAVE are open-source and thus, available for scrutiny. This increases AAVE’s accountability to its users. > > 4. AAVE is a Decentralised Autonomous Organisation, which means that the average retail investor is empowered with a voice. Should you own AAVE tokens, you will gain the chance to vote and decide on the outcome of AAVE Improvement Proposals (AIPs). Recently, AAVE token holders voted to close the ETH lending market ahead of the ETH Merge. An approval rate of 78% was achieved, and this proposal was implemented promptly ten hours later. Another example involved users approving a proposal on July 18, 2022; consequently, it all reserves on the AAVE V3 deployment on Harmony were frozen, which was effective in reducing the impact of the hack on users. Having users be directly involved in the decision-making process will appeal to people who wish to exercise more ownership of their assets. > 5. AAVE is also diversifying its services. For instance, it is jumping onto the Web3 bandwagon by launching a new decentralised social media platform called “Lens Platform”. Content creators will have total control over the content they create and how they choose to engage their community. Being allowed to have artistic integrity may help these content creators to flourish their creativity. > 6. AAVE launched its stablecoin $GHO in July 2022, which will be minted by depositors looking to take stablecoin debt. This is expected to increase AAVE’s bottom-line margin and enhance its sustainability. > > References > > https://p2pfinancenews.co.uk/2020/01/22/ethlend-winds-down-loanbook-in-favour-of-aave-flash-loans/ > > https://cryptobriefing.com/aave-makes-web3-social-bet-with-lens-protocol-launch/ > > https://messari.io/report/the-state-of-aave-q2-2022?__s=e9fmqmd8kryv9w3cjehv&utm_source=drip&utm_medium=email&utm_campaign=H-Aave+You+Met+Ted%3F > > https://messari.io/intel/event/c783e20c-b0cd-4ee3-845b-51137a6d729f?utm_source=newsletter_intel&utm_medium=organic_email&utm_campaign=intel_freeze_reserves_harmony ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Aave) to find submissions for other topics.

coinfeeds-bot

tldr; Aave Labs proposes a strategic plan for Aave's development up to 2030, focusing on enhancing its position in the DeFi space. The plan includes the introduction of Aave V4, innovations in cross-chain liquidity, and the adoption of real-world assets with GHO. Aave aims to scale its ecosystem, improve user experience, and maintain its market leadership through continuous innovation and community involvement. The proposal also outlines a three-year technical contributor grant with annual reviews to ensure alignment with Aave DAO's objectives. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.

CointestMod

#Aave Pro-Arguments Below is a Aave pro-argument written by cryotosensei. > 1. AAVE has a novel flash loan concept that allows users to lend and borrow crypto assets from each other without the need for third party intermediaries. These flash loans are hassle free as they do not require users to submit collateral in advance. They also enable users to borrow from reserve liquidity pools and subsequently pay back their loans plus interest within the same transaction. This enables users to perform arbitrage trades. AAVE also offers a world of possibilities; at least 31 cryptocurrencies are available for borrowing and lending. > > 2. Borrowing and lending of cryptocurrencies with AAVE is completely anonymous - a plus point for people who are keen to protect their personal data and privacy. > > 3. The smart contracts on AAVE are open-source and thus, available for scrutiny. This increases AAVE’s accountability to its users. > > 4. AAVE is a Decentralised Autonomous Organisation, which means that the average retail investor is empowered with a voice. Should you own AAVE tokens, you will gain the chance to vote and decide on the outcome of AAVE Improvement Proposals (AIPs). Recently, AAVE token holders voted to close the ETH lending market ahead of the ETH Merge. An approval rate of 78% was achieved, and this proposal was implemented promptly ten hours later. Another example involved users approving a proposal on July 18, 2022; consequently, it all reserves on the AAVE V3 deployment on Harmony were frozen, which was effective in reducing the impact of the hack on users. Having users be directly involved in the decision-making process will appeal to people who wish to exercise more ownership of their assets. > 5. AAVE is also diversifying its services. For instance, it is jumping onto the Web3 bandwagon by launching a new decentralised social media platform called “Lens Platform”. Content creators will have total control over the content they create and how they choose to engage their community. Being allowed to have artistic integrity may help these content creators to flourish their creativity. > 6. AAVE launched its stablecoin $GHO in July 2022, which will be minted by depositors looking to take stablecoin debt. This is expected to increase AAVE’s bottom-line margin and enhance its sustainability. > > References > > https://p2pfinancenews.co.uk/2020/01/22/ethlend-winds-down-loanbook-in-favour-of-aave-flash-loans/ > > https://cryptobriefing.com/aave-makes-web3-social-bet-with-lens-protocol-launch/ > > https://messari.io/report/the-state-of-aave-q2-2022?__s=e9fmqmd8kryv9w3cjehv&utm_source=drip&utm_medium=email&utm_campaign=H-Aave+You+Met+Ted%3F > > https://messari.io/intel/event/c783e20c-b0cd-4ee3-845b-51137a6d729f?utm_source=newsletter_intel&utm_medium=organic_email&utm_campaign=intel_freeze_reserves_harmony ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Aave) to find submissions for other topics.

Yougetwhat

Aave will come back. TVL is rising and they launched GHO stable coin

LoadingALIAS

DeFi. Zero swing trades. Zero meme coins. Zero BTC. I’d put the entire bag in DeFi positions, compound my interest daily, and rotate when it made sense. I’d probably split the entry into a month but only because this month is the halving month that happens every 4 years. You’ll never time the bottom pre halving; DCA into you LPs every time you see red on the ticker. Do NOT use ETH. You’ll waste fees, gas, etc. Use Optimism. It’s the best L2, IMO. If you’re new to DeFi - look for correlated LP positions, look for DeFi protocol’s wrapped tokens that are linked to L2s or their DeFi counterparts. Things like Optimism, Velodrome, and Beefy Wrapped Velodrome. They’re inextricably linked; limiting exposure to impermanent loss - opportunity cost or realized loss doesn’t matter. Most wrapped tokens in DeFi eventually land between 85-100% of the token being wrapped, too. There are a handful of plays here. I’d also look into stables if you’re risk averse. You can lock up GHO & fxUSD for 110% interest right now. Market bumped DSR to 13%, and mints sDAI in return. sDAI & USDC are earning another 40% right now. Granted, the Maker play is on ETH and limited if you’re in the US x you follow the rules. $50k puts you in the game in a real way, dude. Be smart. There is zero reason to carry any risk and you can make serious money right now. This is a year you want to be playing the game.

Theonlyeasyday

Can someone explain to me why GHO has had such a difficult time maintaining a peg? I mean, it's overcollateralized, isn't it?

coinfeeds-bot

tldr; Aave is advancing a proposal to launch a $5M quarterly incentives program named "Merit" to encourage adoption and reward users. The program aims to distribute rewards in wrapped Ether (WETH) and Aave's GHO stablecoin for actions aligned with Aave's strategic objectives, enhancing its competitiveness in the DeFi landscape. The rewards are planned for users engaging in specific activities such as borrowing against deposits, staking, participating in governance, and migrating funds from rival protocols. The proposal, currently focused on Aave's v3 deployment on Ethereum, seeks to incorporate community feedback before proceeding to a final vote for implementation. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.

CreepToeCurrentSea

"Despite high expectations, its performance lags behind recently launched stablecoins like Aave GHO. Bank of America predicts further hurdles for PYUSD, citing competition from yield-bearing stablecoins." They need to up their game and also have yield services for their stablecoin.

coinfeeds-bot

tldr; PayPal's PYUSD stablecoin, launched with high expectations, is facing limited adoption. Despite being listed on major crypto exchanges, only a small portion of its supply has circulated, with less than $6.5 million in circulation. This is significantly lower than the circulating supply of recently launched stablecoins like Aave GHO. The slow adoption of PYUSD is attributed to factors such as incompatibility with wallets, absence of trading pairs, and lack of new functionality. Bank of America predicts further challenges for PYUSD, citing competition from yield-bearing stablecoins and central bank digital currencies. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.

CointestMod

#Aave Pro-Arguments Below is a Aave pro-argument written by cryotosensei. > 1. AAVE has a novel flash loan concept that allows users to lend and borrow crypto assets from each other without the need for third party intermediaries. These flash loans are hassle free as they do not require users to submit collateral in advance. They also enable users to borrow from reserve liquidity pools and subsequently pay back their loans plus interest within the same transaction. This enables users to perform arbitrage trades. AAVE also offers a world of possibilities; at least 31 cryptocurrencies are available for borrowing and lending. > > 2. Borrowing and lending of cryptocurrencies with AAVE is completely anonymous - a plus point for people who are keen to protect their personal data and privacy. > > 3. The smart contracts on AAVE are open-source and thus, available for scrutiny. This increases AAVE’s accountability to its users. > > 4. AAVE is a Decentralised Autonomous Organisation, which means that the average retail investor is empowered with a voice. Should you own AAVE tokens, you will gain the chance to vote and decide on the outcome of AAVE Improvement Proposals (AIPs). Recently, AAVE token holders voted to close the ETH lending market ahead of the ETH Merge. An approval rate of 78% was achieved, and this proposal was implemented promptly ten hours later. Another example involved users approving a proposal on July 18, 2022; consequently, it all reserves on the AAVE V3 deployment on Harmony were frozen, which was effective in reducing the impact of the hack on users. Having users be directly involved in the decision-making process will appeal to people who wish to exercise more ownership of their assets. > 5. AAVE is also diversifying its services. For instance, it is jumping onto the Web3 bandwagon by launching a new decentralised social media platform called “Lens Platform”. Content creators will have total control over the content they create and how they choose to engage their community. Being allowed to have artistic integrity may help these content creators to flourish their creativity. > 6. AAVE launched its stablecoin $GHO in July 2022, which will be minted by depositors looking to take stablecoin debt. This is expected to increase AAVE’s bottom-line margin and enhance its sustainability. > > References > > https://p2pfinancenews.co.uk/2020/01/22/ethlend-winds-down-loanbook-in-favour-of-aave-flash-loans/ > > https://cryptobriefing.com/aave-makes-web3-social-bet-with-lens-protocol-launch/ > > https://messari.io/report/the-state-of-aave-q2-2022?__s=e9fmqmd8kryv9w3cjehv&utm_source=drip&utm_medium=email&utm_campaign=H-Aave+You+Met+Ted%3F > > https://messari.io/intel/event/c783e20c-b0cd-4ee3-845b-51137a6d729f?utm_source=newsletter_intel&utm_medium=organic_email&utm_campaign=intel_freeze_reserves_harmony ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Aave) to find submissions for other topics.

coinfeeds-bot

tldr; Aave's new stablecoin, GHO, has struggled to maintain its $1 peg since its launch in July. The token has traded between $0.97 and $0.99, with a brief dip to $0.94. Experts attribute the poor performance to a lack of a formal redemption mechanism and weak demand. Aave's founder, Stan Kulechov, defends GHO and believes it will return to its peg with the launch of the GHO Stability Module. The module will allow users to mint GHO using other stablecoins as collateral, creating an arbitrage opportunity. However, critics argue that there is no guarantee the peg will be regained. The de-pegging of GHO highlights the challenges faced by new stablecoins in the competitive crypto industry. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR. Try our free crypto chatbot at https://chat.coinfeeds.io*

coinfeeds-bot

tldr; Aave has launched a new USD-pegged stablecoin called GHO, with 2.76 million coins minted within 48 hours of its release. The governance token holders of Aave approved the launch and have control over the total supply, interest rate, and minting caps of GHO. The stablecoin is overcollateralized, and interest from borrowing GHO is paid to the DAO treasury. Users can mint GHO by offering other cryptocurrencies as collateral. Aave's V3 market has a maximum minting capacity of 100 million GHO, but this may be increased through a community vote. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*

coinfeeds-bot

tldr; The Aave DAO has voted to launch a new decentralized stablecoin called GHO on the Ethereum mainnet. The stablecoin, pronounced "go," will offer more transparency for users and will be minted through a variety of collateral assets held by users across the Aave Protocol. Unlike other stablecoins like MakerDAO's DAI, GHO can be minted through deposited collateral in a single transaction. The Aave DAO will be responsible for adjusting interest rates, setting mint caps, and governing who can mint GHO. The company plans to submit a multi-chain plan for approval but currently intends to launch GHO only on Ethereum's mainnet. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*

axolotl_life

> GHO differs from some of its stablecoin peers, like MakerDAO's DAI, in the way it can be minted through the deposited collateral. Unlike DAI which requires separate vaults for each asset used for minting, different types of GHO collateral can be deposited in one transaction. > True to its decentralized nature, Aave’s DAO will be responsible for adjusting interest rates, setting mint caps, and governing who will be allowed to mint GHO based on a set of predetermined conditions.

coinfeeds-bot

tldr; Aave Protocol has launched its stablecoin GHO on the Ethereum mainnet, with $2.19 million worth of GHO minted so far. The stablecoin is backed by various digital assets, including Ether and Aave's native token AAVE. The launch of GHO came after a community governance vote, with overwhelming support. Unlike centralized stablecoins, the assets backing GHO are transparent and verifiable. GHO's revenue will contribute to Aave's DAO treasury, with governance entrusted to AAVE and stkAAVE token holders. GHO is currently available to the public. The launch of GHO adds to the growing number of DeFi-native algorithmic stablecoins. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*