Chainlink and Aave Labs have expressed their commitment to collaborate in the future to further GHO, a decentralized and overcollateralized stablecoin that is native to the Aave Protocol. The objective is to boost stablecoin and DeFi, making the system accessible and empowering users from regions that have not been banked or are underbanked.
The plan is to focus on distribution and empowerment, with distribution emphasizing reaching out to a large number of users who have not been able to board the ship of the financial system. Stani Kulechov, the founder of Aave Labs, highlighted this principle.
Stani has further stated that success depends on how well they can bring off-chain assets onto the chain. They are ideally looking to scale the current financial mechanism and fuel institutional growth by introducing real-world utility. There is an underlying opportunity for distribution, along with bagging attractive yields with stablecoin and DeFi.
In the end, Stani believes that it is about creating a powerful local economy via decentralized offerings that would be a perfect alternative to stablecoins.
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The development came months after the Aave DAO launched GHO on Ethereum Mainnet. As for Chainlink, it recently highlighted that it was bringing a fundamental layer to the new financial system. Developments like these and the recent announcement have marked an uptick in the listed value of LINK and AAVE.
Chainlink’s LINK is up by 1.27% in the last 24 hours and is listed at $17.87 at the time of writing this article. Aave’s native token has surged by 2.65% during the same time window, exchanging hands at $123.97 at the moment. Chainlink has simultaneously ventured into the sphere of expansion with Chainlink Galaxies, which has been defined as an all-new gaming platform powered by LINK.
The collaboration between Chainlink and Aave for GHO is to boost existing financial mechanisms and institutional growth. They are likely to tackle global challenges in this endeavor: financing, interoperability, documentation, fraud, coordination, errors, and visibility. Chainlink has previously highlighted these in a blog post.
Chainlink said that it extends its services to deal with global challenges. These include all the core elements of blockchain technology to unlock its potential. Also extending are the elements of interoperability, on-chain trade finance, digitization plus automation, and an aligned ecosystem, to mention a few.
Simply put, Chainlink and Aave aim to amplify the benefits of DeFi and stablecoins worldwide, especially among segments that have not yet benefited from the existing financial mechanism. The idea relies heavily on distribution to achieve this level of empowerment.
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Stani explained this while in conversation with Zach Rynes, the Chainlink Community Liaison. Their discussion detailed the association that crypto and Chainlink share in their journey of evolution.
