- GHO has launched on the Ethereum mainnet.
- Aave replaced MakerDAO as the DeFi protocol with the second largest TVL.
Following the ratification of a proposal to do the same, loan protocol Aave [AAVE] finally launched its over-secured stablecoin GHO on the Ethereum Mainnet on July 15.
The Aave DAO has been successfully launched @GHOAave on the Ethereum Mainnet. Congratulations to the Aave community on this historic moment! pic.twitter.com/Br3QGqMU8X
— Aave (@AaveAave) July 15, 2023
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According to the announcement blog postwith the stablecoin available on the Ethereum mainnet, “users will be able to mint GHO on the Aave protocol’s Ethereum V3 market against assets they have already provided as collateral.”
The launch of GHO came after the implementation of a governance proposal put forward on July 10 by the decentralized independent organization of Aave.
According to the blog post, the DAO is responsible for governing GHO. The members of this governing body will determine the stablecoin’s supply, interest rates, and coin limits. They will also approve and supervise supervisors that GHO can create under specific conditions.
Aave overtakes Maker; GHO to push it even further
According to data from Defillamawith a total value locked (TVL) of $6.124 billion, Aave has toppled MakerDAO [MKR] as the decentralized finance (DeFi) protocol with the second largest TVL after Lido [LDO].
Source: DefiLlama
At the beginning of the year, Lido replaced Maker as the leading DeFi protocol. This was due to increased Ether [ETH] staking activity in anticipation of Ethereum’s Shanghai Upgrade, which directed traffic to the liquid staking protocol.
The situation worsened for the lending protocol when the stablecoin DAI took a depeg in March following the unexpected collapse of Silicon Valley Bank. This resulted in an unabated decline in the supply of DAI.
Now that GHO is live on Ethereum, a new group of users is expected to try out Aave, further driving the TVL up.
According to information from DefiLlama, Aave’s TVL is up 20% over the past month, while Maker’s is down 2%.
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Revenues rise as network activity recovers
According to on-chain data provider Token terminal, the number of active users of Aave has gone down over the past year. Data from Token Terminal revealed a 27% drop in daily user activity over that period. As many people come to Aave to try out the latest stablecoin on the market, network activity on the lending protocol is expected to grow.
In terms of protocol revenue, Aave’s revenue is down 70% over the past year. This equates to a 75% decrease in transaction fees that users pay for using the lending protocol. With the launch of GHO, a positive revenue recovery may be on the horizon.
