Kategorie: Crypto News

Aave DAO, the Aave DeFi protocol’s governing body, in voting that ended today has voted in favor of a proposal by Aave Companies to the DAO for the introduction of GHO.

In the three-day voting process, the GHO stablecoin proposal was supported by 99.99% of all the voters (501,000 AAVE token holders).

The GHO will be administered by Aave governance through an AIP and 100% of interest payments on GHO borrows will also be sent to the AaveDAO. However, it will be up to the AaveDAO to decide if it will support the Aave Companies for the cost and work on the GHO.

Minting the GHO stablecoin on Aave

Following the community approval, GHO stablecoin will be launched on the Aave Protocol. Aave protocol users will be able to mint the GHO stablecoin against a wide range of crypto-assets. In addition, those who borrow GHO will also continue to earn interest on their underlying supplied collateral.

Aave users have the liberty of depositing any of the cryptocurrencies accepted on the platform as collateral for minting the GHO stablecoin. Besides the deposits serving as collateral for minting GHO stablecoin, the deposits will also generate yield for the Aave Borrowers who take out GHO stablecoin loans.

Just like the MakerDAO’s DAI, Aave wants the GHO to be an over-collateralized stablecoin meaning more GHO tokens will be created compared to the value of the deposited cryptocurrencies.

Earlier on, the founder of Aave, Stani Kulechov, stated that they would try promoting organic acceptance of the GHOstablecoin on Layer 2 of Ethereum.

By approving the proposal to launch the GHO, Aave has basically set itself on a path to join the likes of MakerDAO and other DeFi stablecoin issuers in launching stablecoins. Another protocol that has expressed the intention of launching a stablecoin is Curve Finance.

The post Aave DAO votes in favor of a proposal to launch GHO stablecoin appeared first on CoinJournal.

A proposal to have the Aave DAO introduce a decentralised, multi-collateral-backed stablecoin dubbed GHO, has passed following a community vote, Aave Companies has announced.

According to the platform, the USD-pegged stablecoin received a greenlight from the DAO community with an overwhelming support of 99.99%.

The community has given the greenlight 🟢 for GHO 👻 The next step is voting on the genesis parameters of GHO, look out for a proposal next week on the governance forum https://t.co/ba4oK50Wb8

— Aave (@AaveAave) July 31, 2022

Aave’s GHO stablecoin

The GHO proposal came out on 7 July this year, with the governance vote required to allow for the launch of the decentralised stablecoin on the Aave Protocol.

In the request, the Aave Companies said the algorithmic stablecoin would allow community participants to mint the token against their collaterals. Accordingly, GHO had been envisioned to be backed by assets the users choose and would see borrowers continue to earn interest on whatever they put out as collateral.

When borrowers repay against their collateral, the Aave Protocol will burn the GHO associated with that account.

“If approved, the introduction of GHO would make stablecoin borrowing on the Aave Protocol more competitive, provide more optionality for stablecoin users and generate additional revenue for the Aave DAO by sending 100% of interest payments on GHO borrows to the DAO,” the Aave Companies proposal offered.

The governance vote began on 28 July after a snapshot a day earlier, and closed on 31 July with 99.99% of the 1,793 total votes giving the proposal a thumbs up. The approval now sets the GHO stablecoin onto the next step, which will involve a vote on the token’s genesis parameters.

A proposal for the same is expected this coming week and will be posted on the Aave DAO governance forum.

The post Aave DAO community adopts proposal for GHO stablecoin appeared first on CoinJournal.

Bitcoin touched a high of $24,666 on Coinbase to leave the benchmark cryptocurrency on the cusp of its best monthly performance since October 2021.

Bitcoin (BTC) rose to highs of $24,666 on US crypto exchange Coinbase on Saturday, hitting its highest price level since mid-June.

BTC/USD is looking to establish fresh support after retesting the 200-week moving average zone, which could be key to bulls plans to edge higher.

Chart showing BTC/USD monthly performance. Source: TradingView

Bitcoin on track for best month since October

The flagship cryptocurrency, which remains above the $24,500 level despite a brief lull late Saturday, is also on track to record its best monthly performance in nine months.

With gains of over 23% in July, BTC/USD is positioned to see its monthly returns the best since seeing nearly 40% in October 2021.

Bitcoin is also registering a positive monthly return for the first time since March when the 30-day performance stood at around 5.4%. Over the three months of April, May and June, Bitcoin price fell by almost 68%, which leaves July as a very good month for bulls.

On-chain, exchange macro outflows have continued as hodlers dug in amid the crypto winter. According to Glassnode, exchange balances have fallen to just about 12.6% of circulating supply, representing 2.4 million BTC.

#Bitcoin balance on exchanges continues its macro decline, reaching 12.6% of the Circulating Supply (2.4M $BTC).

Exchange balances have now seen a macro outflow of over 4.6% of the circulating supply since the March 2020 ATH.

Live Chart: https://t.co/zJnfaG05zt pic.twitter.com/vhKCudqGUr

— glassnode (@glassnode) July 29, 2022

Bitcoin’s latest upside followed a broader market reaction to the US Federal Reserve’s rate hike last Wednesday, and mirrored gains across the US indexes where the S&P 500 closed the week more than 4% higher and Nasdaq ended with +4.7%. 

Over the month, the S&P 500 gained more than 9%, while the Nasdaq added over 12%.

The post Bitcoin touches $24,600 as bulls eye best month since October 2021 appeared first on CoinJournal.

Bitcoin (BTC) is likely to outperform in the face of a dovish flip from the US Federal Reserve and a weaker US dollar, according to digital assets manager CoinShares.

The firm’s bullish outlook for BTC comes amid a sharp bounce for cryptocurrencies on the back of the Fed’s 0.75% interest rate hike and recession talk. But this upside also comes in a bearish run that saw BTC price fall to $17,600 and then struggle to break above $22,000.

CoinShares says the “hiatus” could give way to an outperformance for the flagship cryptocurrency, including a decoupling from equities.

“Although Bitcoin’s price performance has been weak in the face of an aggressive FED, this current hiatus in price performance may be short-lived,” the firm explained in the Twitter thread.

A dovish Fed will be bullish for BTC

The Fed’s hawkish tilt has been necessary as the central bank looks to control rising inflation, but market analysts believe the monetary policy could flip dovish to aid economic growth and employment. In its assessment, CoinShares suggests such a move could result in weakness for the US dollar – a combination of macro factors that could buoy a fresh rally in Bitcoin.

“While we believe we are likely to see the US Federal Reserve continue to hike interest rates through the summer,” the asset manager noted, “we also believe they are likely to adopt a softer outlook on economic growth thereafter, prompting considerable dollar weakness.”

On what could happen in the market due to these factors, the firm says a decoupling from stocks is likely, with this scenario more likely amid “recession or stagflation.”

[4/5] We believe a policy mistake is highly likely, where Bitcoin prices are likely to diverge from growth equities, with the former likely to benefit from a dovish FED and weaker USD, while the latter underperforming in the face of a recession or stagflation.

— CoinShares 👩‍🚀 (@CoinSharesCo) July 29, 2022

Bitcoin was trading around $24,600 on Saturday evening, up more than 8% this past week and 23% in the past 30 days. 

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