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Aave's GHO Stablecoin Trades Below $1 Peg Due to Drop in Demand and Limited Integration in DeFi Protocols

Aave's GHO stablecoin, designed to maintain parity with the US dollar, has been trading below its $1 peg since its launch on the Ethereum Mainnet on July 15. The drop in demand for the stablecoin and its limited usage as borrowers cannot hold it for yield farming opportunities are cited as reasons for its inability to trade at its designed peg. On-chain analyst Tom Wan also noted that GHO has yet to see in-depth integration across decentralized finance (DeFi) protocols, which could be contributing to its depeg.

Ethereum Ethereum $3,116.79
+1.79%
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