AAVE, one of the companies that developed and designed the loan agreement, said on Thursday that AAVE, one of the decentralized equity financing (Defi) agreements with the largest login password, had already launched its local smooth connection online at Goerli testing in Ethernet Square.

According to a press release, GHO developers and potential sellers can browse stablecoin's code base, test how it works, and then announce it to a wider audience on the ethernet block chain.

The online operation of the main network of GHO still needs street thinking and permission.

AAVE is an online lending platform that allows users to apply smart contracts to get data encryption loans or token returns without the need for third-party supervision. It is regulated by a decentralized autonomous organization, the AAVE DAO, based on the proposed voting of local community networks.

The local stable system of the agreement has been highly desired by Defi customers since the community voted to regulate the network in August to determine the majority of the research and development of the agreement.

Sablecoin is a group of creative digital currencies whose value is supported by external assets and is committed to pegging its price to loans such as the US dollar. This asset class has become the support of the login password ecosystem, according to promoting the transfer of transactions between traditional currency loans and digital assets. Its total market capitalization has grown to $136 billion.

AAVE's GHO is likely to face stiff competition as a series of rival decentralized finance (Defi) agreements are unveiled or are developing their own local stable system as a way to attract users when data encryption borrowing is listless. At this stage, Defi Lending Maker's DAI is a huge decentralized stable currency, with a volume of $5 billion, while another top protocol, Curve, has been slow to release its local crvU.S. Stable currency.

Even so, AAVE ranks first in Defi, with a pledge to use about $7 billion worth of digital assets on the site, which could give it a smooth boost.

"I suspect GHO will soon become the top decentralized and stable person after Dai," Dustin Tiander, an investment analyst at Messari, a cryptographic intelligence firm, told WJB. "however, since debt requirements are now very low in DEFI, it is likely to take some time to see a significant expansion."

How does AAVE's GHO work?

According to a technical paper written by Emilio Fangera and Dermot Valery of AAVE, GHO will be a stable investment in too much collateral backed by login password assets. The price will be fixed at $1 with oracle bone inscriptions.

The supply of GHO is controlled by the coin and ignition system. When a customer uses digital assets as collateral to raise money GHO, AAVE will create a (currency) GHO token, while his underlying assets will continue to be profitable.

When a customer borrows a loan from the repayment capital, AAVE will destroy (damage) the previously publicly issued GHO, reduce its investment, and return the basic collateral.

These people who bet on the AAVE regulation tokens of the agreement can discount how to raise funds GHO.

"this strengthens the incentive to bet on AAVE and could lead to a short-term increase in bets on AAVE, depending on interest rates and discount rates," Mr Tiand added. "in the long run, if the discount is sufficient and meaningful, it may be a practical incentive mechanism to encourage people to abandon the representative discharge of diluents in order to attract assets."

AAVE DAO will be responsible for defining the main parameters of token supply, interest rate and risk. DAO will receive full interest payments during the GMO borrowing period, which is significantly different from lending and using all other digital assets on AAVE.

GHO will depend on so-called thrusters, such as other Defi protocols that can reliably produce and damage GHO tokens. They need to obtain approval from AAVE regulators and comply with loan restrictions known as buckets.

According to the press release, prior to the release of Testnet, gho deployment experienced financial audits of blockchain technical code audit companies Open Zeppelin, SigmaPrime and ABDK, and financial audits of Certora are under way at this stage. The agreement also launched a Bug Bounty scheme to support community team members to discover and report network security problems, with a reward of 250000 yuan.

Upgrade (16:04 UTC on February 9th):Enhanced the comments of investment analysts on AAVE bets.