TL;DRAave has launched its GHO stablecoin on Arbitrum,initiating its planned multi-chain expansion a
TL;DR
Aave, one of the leading DeFi lending protocols by total value locked (TVL), has launched its GHO stablecoin on the Arbitrum network, thus beginning its planned multi-chain expansion. Aave users on Arbitrum will be able to mint and burn GHO nativelyusing the v3 protocol version.
The integration with Arbitrum has the potential to reduce fees, accelerate transactions, and improve GHO liquidity.The stablecoin is backed by multiple collaterals within the protocol. It currently has a market capitalization of $89.1 million and ranks 21st in size among stablecoins, according to CoinGecko.
The deployment on Arbitrum is the first step in GHOs multi-chain expansion strategy, unanimously approved by the Aave community. The goal is to overcome current limitationsof GHO, mainly confined to the Ethereum mainnet and secondary markets, thereby expanding its utility and reach in the DeFi sector.
Aave also plans to utilize Chainlinks cross-chain interoperability protocol (CCIP) to facilitate the secure expansion of GHO across different blockchains. Each GHO implementation will be backed by reserves in Ethereum, ensuring the security and stability of the asset across all supported chains.
Aave DAO Promotes GHO Adoption
Additionally, the Aave DAO has allocated 750,000 ARB tokens as incentives to foster GHO adoption on the Arbitrum network. Thismeasure is intended to boost liquidity growth on Arbitrum and pave the way for the integration of new use cases and GHO-related products in the future.
The protocols DAO, known for its focus on decentralized governance, strongly supports this initiative. The initial implementation on Arbitrum will allow users to leverage GHO as a borrowable asset in the Aave pool on Arbitrum, thus facilitating GHO supply for yield and expanding lending options on the network.
The company continues to explore new opportunities to expand GHO to other networks, always maintaining a focus on security, efficiency, and sustainable growth within the DeFi ecosystem.
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