Aave's Stablecoin GHO Struggles to Hold $1 Peg Amid Weak Demand, Absence of a Redemption Mechanism
Aave's stablecoin GHO has been trading below its intended $1 peg since its launch in July, fluctuating between $0.97 and $0.99. Experts attribute this performance to weak demand and the lack of a formal redemption mechanism. Aave founder Stan Kulechov believes that the focus on restoring the peg should come later, as improvements like the GHO Stability Module are set to launch in the coming months.
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Aave's Stablecoin GHO Struggles to Hold $1 Peg Amid Weak Demand, Absence of a Redemption Mechanism
Aave's stablecoin GHO has been trading below its intended $1 peg since its launch in July, fluctuating between $0.97 and $0.99. Experts attribute this performance to weak demand and the lack of a formal redemption mechanism. Aave founder Stan Kulechov believes that the focus on restoring the peg should come later, as improvements like the GHO Stability Module are set to launch in the coming months.