GHO, the decentralized stablecoin from the main DeFi lending protocol, has lastly achieved parity with the U.S. greenback.
On Feb. 6, Stani Kulechov, the founding father of Aave, celebrated the information by way of tweet and shared a screenshot indicating GHO was buying and selling for $1.
“Was a protracted journey for the Aave group to get right here and now, lastly, after six months, the overcollateralized GHO is now lastly at peg,” Kulichov tweeted. “Congrats to the Aave group for enabling basic constructing blocks for DeFi and funds.”
Nonetheless, information from CoinGecko signifies GHO final modified fingers for $0.996 after briefly tagging $1 twice inside six hours roughly half a day in the past. GHO persistently traded close to $0.98 all through December and most of January.
GHO’s path to dollar-parity
GHO was launched in July 2023, permitting Aave customers to mint the stablecoin whereas utilizing belongings deposited to the lending platform as collateral.
Nonetheless, the token was rapidly marred by its incapability to take care of parity with USD. GHO slumped to a low of $0.96 in late October and mid-November, prompting motion from the Aave crew. The downward value stress was attributable to Staked AAVE holders profiting from favorable borrow charges to arbitrage the token in opposition to DAI and earn yield by way of the DAI Saving Price.
On Oct. 31, TokenBrice, a member of the Aave Liquidity Committee, outlined plans to drive the token’s value in the direction of $1 by means of actively managed liquidity positions on DeFi protocols together with Maverick Protocol, amongst different measures. The transfer appeared profitable, with GHO buying and selling above $0.98 by December.
Aave can be getting ready to launch the GHO Stability Module (GSM) — a protocol permitting roughly one-to-one swaps between GHO and different stablecoins —to help the stablecoin’s value.
Though the GSM has been underneath dialogue since August, a proper proposal outlining parameters for its deployment was handed on Jan. 13.
