The Aave DAO members will soon begin voting on whether to deploy GHO, a stablecoin on the Ethereum blockchain. GHO is a stablecoin developed by the Aave team and users can mint it against a variety of crypto assets.

If approved, the proposal will make stablecoin borrowing on the Aave Protocol more competitive and generate additional revenue for the Aave DAO by providing it with 100% of the interest payments made on GHO borrows.

The GHO stablecoin has been live on the Ethereum blockchain’s Goerli testnet since February, and there haven’t been any major bugs in the system. The price of Aave, the native coin of the Aave ecosystem, is currently up more than 3% over the past 24 hours, with each coin costing $72.74.

When the stablecoin is launched, users will be able to mint GHO tokens using their collaterals. The GHO stablecoin is backed by a variety of cryptocurrencies selected by users, who will also receive interest on their collateral assets. The GHO stablecoin is pegged at $1, however, users must provide collateral at a certain ratio before they can mint GHO. When users repay their loans, the GHO protocol burns that user’s GHO stablecoins.