Key Takeaways:
- Aave has launched its GHO stablecoin on the Arbitrum network, aiming to utilize Arbitrum’s low costs and high throughput.
- The deployment, facilitated by Chainlink’s Cross-Chain Interoperability Protocol (CCIP), is part of a phased plan for multi-network expansion.
- Chainlink’s burn-and-mint model and lock-and-release mechanism enable seamless transfer of GHO tokens across blockchains.
Aave has deployed its GHO stablecoin on the Arbitrum network following a vote from its decentralized autonomous organization (DAO).
This decision aims to leverage Arbitrum’s low transaction costs and increased throughput.
Aave's cross-chain GHO is officially live, #PoweredByChainlink CCIP starting with @arbitrum mainnet.
— Chainlink (@chainlink) July 2, 2024
The @aave DAO voted for this integration with 100% approval.https://t.co/IkiAD597Vd pic.twitter.com/o0AvVSwiGt
The deployment is part of a phased plan to eventually launch GHO on multiple networks, prioritizing security and risk management.
Chainlink’s Cross-Chain Interoperability Protocol (CCIP) facilitates this multi-network deployment.
The protocol uses a burn-and-mint model and a lock-and-release mechanism to transfer GHO tokens between blockchains.
This interoperability allows GHO to be locked or burned on the source chain and minted or released on the target chain.
GHO is now available on the @Arbitrum network, the largest Ethereum L2 by value locked and monthly active wallets.
— Aave Labs (@aave) July 2, 2024
🌐 This marks the DAO's first new market in its phased GHO cross-chain expansion strategy. pic.twitter.com/6pokRGRxvF
The collaboration between Chainlink and Arbitrum began in 2020, fostering cross-chain development for decentralized applications.
Chainlink’s CCIP has seen increased adoption, with significant revenue generated primarily from activity on Arbitrum.
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