Aave DAO has launched its GHO stablecoin on the Arbitrum network as part of its cross-chain expansion strategy.
The key points are:
Aave DAO deployed GHO on Arbitrum, the top Layer 2 network by total value locked (TVL), allowing users to natively mint and burn GHO using the Aave v3 deployment on Arbitrum.
This marks the first deployment of GHO's cross-chain expansion, which aims to increase accessibility, lower transaction costs, enhance the user experience, and improve liquidity for the stablecoin.
Aave is leveraging Chainlink's Cross-Chain Interoperability Protocol (CCIP) to facilitate GHO's cross-chain expansion, with each GHO deployment backed by reserves held on Ethereum.
The Arbitrum DAO has allocated 750,000 ARB tokens to incentivize GHO adoption on the network, and Aave's Liquidity Committee will use these incentives to enhance GHO's liquidity.
Aave plans to progressively expand GHO to additional networks after rigorously evaluating the Arbitrum deployment, with the goal of unlocking new use cases for the stablecoin, including digital payments.