GHO Stablecoin Struggles to Maintain $1 Peg
The Aave Companies, now known as Avara, is facing challenges in stabilizing its stablecoin GHO, which is struggling to maintain its targeted $1 peg. The Liquidity Committee is working to strengthen the stablecoin, aiming to increase its value to at least $0.985 per unit by the end of November 2023.
Avara’s Transformation and Acquisition
This week, Aave Companies rebranded as Avara and also announced its acquisition of Los Feliz Engineering, a firm specializing in Web3 crypto software development. Despite these changes, the GHO stablecoin continues to trade below its desired $1 value, averaging around $0.96 per unit over the past week.
As of November 17, 2023, GHO’s value has fluctuated between $0.957 and $0.964 per token over a 24-hour period. The project’s Liquidity Committee, led by “Token Brice,” has been exploring potential solutions to enhance the stablecoin’s value.
Strategies to Boost GHO’s Value
The committee is considering various strategies to increase GHO’s utility, such as incentivized pool pairs on the Maverick Protocol and the establishment of a new Bunni Pool for GHO/USDC. They are also exploring the use of wrapped GHO (wGHO) as collateral on Aave, while excluding GHO borrowing. The goal is to elevate GHO’s price to at least $0.985 per unit by the end of November.
Hot Take: GHO’s Path to Stability
The Liquidity Committee’s efforts to enhance the value of GHO are vital for the stability of the stablecoin. Avara’s rebranding and acquisition signal the company’s commitment to driving positive momentum for GHO. As the strategies unfold, GHO’s path to stability remains a key focus, aiming to achieve a value of at least $0.985 per unit by the end of November.
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