Aave DAO launching GHO stablecoin on Arbitrum
Quick Take
- Aave’s decentralized autonomous organization is launching its GHO stablecoin on the Arbitrum blockchain as part of its “cross-chain expansion strategy.”
- The hope is that adding Arbitrum will increase adoption.
Aave’s decentralized autonomous organization is launching its GHO stablecoin on the Arbitrum blockchain as part of its "cross-chain expansion strategy."
"The multi-collateralized stablecoin native to the Aave Protocol, will utilize the industry standard Chainlink Cross-Chain Interoperability Protocol (CCIP) and rollout progressively, beginning with Arbitrum as the first network and expanding over time to other networks," according to a statement.
Native to the Aave Protocol, the GHO stablecoin is fully backed and transparent, according to Aave DAO, which manages the token's supply. Assets available within the Aave Protocol can also be used to back GHO.
Almost a year ago, Aave activated the stablecoin on the Ethereum mainnet. That move followed the GHO stablecoin initially being released on the Goerli testnet in February 2023.
Aave's expansion to Arbitrum and later networks centers around boosting access and adoption while lowering transaction costs.
"Integrating with other networks will lower fees, offer faster transactions, and enhance liquidity, making GHO more attractive to users and ushering in a variety of new use cases, including GHO digital payments,” Aave Labs founder and CEO Stani Kulechov said in a statement.
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