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The Quest to Stabilize GHO — Navigating Challenges to Reach $1 Peg Amidst Aave’s Corporate Rebrand

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The Quest to Stabilize GHO — Navigating Challenges to Reach $1 Peg Amidst Aave’s Corporate Rebrand

The blockchain technology enterprise Aave Companies, recently rebranded as Avara, is still navigating challenges in stabilizing its stablecoin GHO, which is currently struggling to sustain its desired $1 peg. The project’s Liquidity Committee is actively working on strategies to strengthen the stablecoin, aiming to elevate its value above $0.985 by November 30, 2023.

GHO’s Liquidity Committee Targets $0.98 Value by Month’s End in Stability Push


This week, the overseeing entity for Aave, Sonar, GHO, and Lens disclosed Aave Companies’ transformation into Avara. Concurrently, the company announced its acquisition of Los Feliz Engineering, a firm specializing in Web3 crypto software development. Amidst these developments, the company’s stablecoin continues to trade below its targeted $1 value. Since its inception, GHO has remained below the $1 benchmark, averaging around $0.96 per unit over the past week.

The Quest to Stabilize GHO — Navigating Challenges to Reach $1 Peg Amidst Aave’s Corporate Rebrand

As of November 17, 2023, the 24-hour trading data shows GHO’s value fluctuating between $0.957 and $0.964 per token. Bitcoin.com News highlighted GHO’s struggle to maintain its dollar peg on November 4. At that time, the GHO Liquidity Committee, led by “Token Brice” (TB), was initiating measures to enhance GHO’s value. Six days later, on November 10, TB revealed a series of potential solutions being explored.

TB reported that GHO’s price hovered between 0.96 and 0.97 in the recent week. A social media post underlined that the total supply of 35 million GHO is approaching its cap. On the Maverick Protocol, two pool pairs (GHO/USDC and GHO/LUSD) are being incentivized, alongside new Uniswap Merkl campaigns for GHO/USDC and GHO/USDT pools. Additionally, a new Bunni Pool for GHO/USDC with a broad price range (0.8499 to 1.0496 USDC per GHO) has been established.



TB also mentioned considering strategies to boost GHO’s utility, such as using wrapped GHO (wGHO) as collateral on Aave, while excluding GHO borrowing. The committee’s goal is to elevate GHO’s price to at least $0.985 per unit by the end of November. “All these initiatives are synergetic with one another, helping to create positive momentum for GHO,” TB stated in conclusion in the social media update.

What do you think about GHO’s issues? Do you think the stablecoin can get up to the $1 parity or $0.98 by the month’s end? Share your thoughts and opinions about this subject in the comments section below.


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