Aave is an open-source protocol to create non-custodial liquidity markets and earn interest on supplying and borrowing assets with a variable or stable APY.
Last month, we wrote about an ongoing proposal for GHO, a native stablecoin on the Aave protocol. The newly passed proposal will create a decentralized multi-collateral stablecoin that is fully backed and native to the Aave Protocol.
GHO will be supported by multiple assets, and soft-pegged to the USD. GHO will be over collateralized by assets that continue to earn yield in the Aave protocol.
Similar to the MakerDao and DAI stablecoin, users can generate GHO after depositing collateral, and then burn GHO when reclaiming collateral.
Interest rates for borrowing GHO will be determined by the AaveDAO, with 100% of interest payments going directly to the DAO treasury.
In the first implementation, the system will set a certain amount of GHO at a discount depending on the amount of staked Aave supplied. These parameters will be determined by the Aave DAO.
This is expected to increase the price of AAVE as investors will be staking as much AAVE as possible to receive this discount on minting a stablecoin asset. The more AAVE taken out of circulation, the higher the demand, resulting in positive price movements.
Aave is an open-source protocol to create non-custodial liquidity markets and earn interest on supplying and borrowing assets with a variable or stable APY.
Last month, we wrote about an ongoing proposal for GHO, a native stablecoin on the Aave protocol. The newly passed proposal will create a decentralized multi-collateral stablecoin that is fully backed and native to the Aave Protocol.
GHO will be supported by multiple assets, and soft-pegged to the USD. GHO will be over collateralized by assets that continue to earn yield in the Aave protocol.
Similar to the MakerDao and DAI stablecoin, users can generate GHO after depositing collateral, and then burn GHO when reclaiming collateral.
Interest rates for borrowing GHO will be determined by the AaveDAO, with 100% of interest payments going directly to the DAO treasury.
In the first implementation, the system will set a certain amount of GHO at a discount depending on the amount of staked Aave supplied. These parameters will be determined by the Aave DAO.
This is expected to increase the price of AAVE as investors will be staking as much AAVE as possible to receive this discount on minting a stablecoin asset. The more AAVE taken out of circulation, the higher the demand, resulting in positive price movements.
Spiking bond yields driving sharp losses in tech stocks
A spike in interest rates since the start of the year has accelerated a rotation out of high-growth technology stocks and into value stocks poised to benefit from a reopening of the economy. The Nasdaq has fallen more than 10% over the past month as the Dow has soared to record highs, with a spike in the 10-year US Treasury yield acting as the main catalyst. It recently surged to a cycle high of more than 1.60% after starting the year below 1%. But according to Jim Paulsen, the Leuthold Group's chief investment strategist, rising interest rates do not represent a long-term threat to the stock market. Paulsen expects the 10-year yield to cross 2% by the end of the year.
A spike in interest rates and its impact on the stock market depends on the economic backdrop, according to Paulsen. Rising interest rates amid a strengthening economy "may prove no challenge at all for stocks," Paulsen said.
Mr. Durov launched Telegram in late 2013 with his brother, Nikolai, just months before he was pushed out of VK, the Russian social-media platform he founded. Mr. Durov pitched his new app—funded with the proceeds from the VK sale—less as a business than as a way for people to send messages while avoiding government surveillance and censorship.
