Aave DAO Approves Stablecoin, Brazilian Bank Offers Crypto Trading, Why Is Ethereum Classic Pumping?

Written by Crypto University

August 1, 2022

Aave DAO Approves Stablecoin

Aave Dao, the community governing the Aave DeFi protocol, has approved the creation of a new stablecoin called GHO. The voting lasted three days, and 99.99% of the community voted in favor. The price of Aave spiked up more than 10% after the DAO’s approval, going from about $93 to $109 in less than 24 hours. 

“The community has given the green light for GHO. The next step is voting on the genesis parameters of GHO, look out for a proposal next week on the governance forum,” posted Aave on Twitter. 

GHO will be an overcollateralized stablecoin. Users can mint GHO by depositing any crypto tokens accepted as collateral on the Aave platform. The deposited collateral will continue to earn interest. 

The creation of GHO will make the borrowing of stablecoins more competitive on the Aave platform. Aave also proposes to charge interest on the GHO borrowed, and 100% of the interest earned will go to the DAO. Aave wishes to adopt the MakerDAO model, which issues DAI – a more successful stablecoin than its predecessors. 

Brazilian Bank To Offer Crypto Trading

Santander Brasil, a subsidiary of the Spanish banking multinational Santander (SAN), will offer crypto trading to its clients in Brazil. The bank plans to offer other crypto-related services and will provide more details in mid-October, after their third earning results. 

“We recognize that it is a market that is here to stay, and it is not necessarily a reaction to competitors positioning themselves. It is simply a vision that our client has demand for this type of asset, so we have to find the most correct and most educational way to do it,” said Mario Leao, the CEO of Santander Bank.

Santander Brasil is the fifth largest bank in Brazil. The bank has over 9 million customers. Santander is following Warren Buffett-backed digital bank Nubank in offering cryptocurrency trading to its customers in Brazil. 

Why Is Ethereum Pumping?

Ethereum Classic (ETC), a hard fork of Ethereum, has pumped up more than 300% in the past two weeks. The cryptocurrency went up from around $14 in mid-July to $40 at the end of the month. The rally is due to the highly-anticipated Ethereum Merge scheduled for September. 

The Ethereum Merge aims to move the Ethereum blockchain from a Proof of Work (POW) protocol to a proof of stake (POS) protocol. This means that miners will have to repurpose their mining equipment, ETC is the best candidate to mine. 

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