Ethereum-based protocol, AAVE launches a new collateral-backed stablecoin, GHO, and rivals MakerDAO DAI stablecoin. Is Aave launching a collateral stablecoin?

Ethereum-based Decentralized finance protocol, AAVE will be launching a new native collateral-backed stablecoin, GHO. GHO will be launched on the Ethereum mainnet and will provide users access to borrowing privileges of the GHO stablecoin. It will also be pegged to the US dollar and collateralized with any asset of the user's choice.

Furthermore, Aave protocol hasn’t been the only blockchain to launch its stablecoin, but GHO differs in these newly launched stablecoins due to being similar to MakerDAO DAI stablecoin, making GHO a direct rival for DAI stablecoin.

Similarly, new cryptocurrency platforms are also being launched, and Aave being a system of smart contracts has been a precedent to platforms like Zetrix blockchain which uses cross-chain technology to facilitate smart contracts, scalability, and security of enterprises globally.

According to Cointelegraph, After this newest launch proposal, Aave’s native token (AAVE) gained 15.04% over the past 24 hours to sit at $71.86.