Aave AAVE/USD is a decentralized finance (DeFi) protocol that lets people lend as well as borrow cryptocurrencies.

Within this system, lenders can earn interest through the process of depositing digital assets into specifically created liquidity pools, and borrowers can use the crypto as collateral in order to take out flash loans.

AAVE is the native cryptocurrency token that powers this protocol and provides holders with access to discounted fees on the platform, and can be used throughout the governance process.

Aave has unveiled its plans toward launching an overcollateralized stablecoin called GHO.

However, this is currently subject to the community DAO’s approval.

The announcement was originally made by Aave Companies, which is the centralized entity that supports the Aave protocol.

According to the announcement, they said: “We have created an ARC for a new decentralized, collateral-backed stablecoin, native to the Aave ecosystem, known as GHO.”

GHO would essentially be an Ethereum-based and decentralized stablecoin that is pegged to the U.S. Dollar (USD), which can be collateralized with multiple assets that the users pick.

As a means of getting GHO, users need to mint the stablecoin against their deposited collateral.

The list of supported collateralized assets, as well as the collateral ratio, is not yet detailed.

The proposal also states that 100% of the interest payments that are accrued by GHO minters will be “directly transferred to the AaveDAO treasury; rather than the standard reserve factor collected when users borrow other assets.”

On July 8, 2022, Aave (AAVE) had a value of $71.34.

In order for us to see what this value point represents for the future of the AAVE cryptocurrency, we will be going over its all-time high point of value, as well as its performance throughout the previous month. 

The all-time high of the Aave (AAVE) cryptocurrency was on May 18, 2021, when it reached a value of $661.69.

When we go over the performance throughout the previous month, Aave (AAVE) had its highest point of value on June 1 at $118.73.

Its lowest point of value, however, was on June 18, at a value of $46.02.

Here we can see a decrease in value of $72.71 or by 61%.

However, from June 18 to July 8, the Aave (AAVE) cryptocurrency has increased in value by $25.32 or by 55%.

With this in mind, we can expect the AAVE cryptocurrency to climb to $100 by the end of July 2022.

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