Aaves GHO Stablecoin to Launch on Arbitrum, Expanding Cross-Chain Reach
- The stablecoin was launched on the Ethereum mainnet by Aave over a year ago.
- GHO will use the widely used Chainlink Cross-Chain Interoperability Protocol (CCIP).
The GHO stablecoin, managed by Aaves decentralized autonomous organization, is set to be launched on the Arbitrum blockchain as part of its cross-chain expansion strategy.
Reportedly, the multi-collateralized stablecoin that is native to the Aave Protocol will use the widely used Chainlink Cross-Chain Interoperability Protocol (CCIP) and will be released in stages. Starting with Arbitrum as the first network and then moving on to others.
According to the Aave DAO, who oversees the tokens supply, the GHO stablecoina native of the Aave Protocolis completely backed and transparent. Additionally, GHO may be backed by assets that are accessible inside the Aave Protocol.
Cross-chain Expansion
The stablecoin was launched on the Ethereum mainnet by Aave over a year ago. That occurred when the GHO stablecoin was first launched on the Goerli testnet in February 2023. In order to increase adoption and decrease transaction costs, Aave is expanding to Arbitrum and subsequent networks. An adaptable, secure multi-chain stablecoin, GHO was its intended purpose from the start.
Moreover, Arbitrum already has its own GHO version, and all future chains containing GHO will have one as well. This version is backed by Ethereum reserves, which provide enough collateral. Tokens are locked on Ethereum and a matching quantity is minted on the other network to maintain a consistent total supply. This allows GHO to securely conduct cross-chain transactions between Ethereum and non-Ethereum chains.
When further chains are added support for, transfers between non-Ethereum chains will be backed by Ethereum reserves but will employ a burn-and-mint approach made possible by CCIP to maximize capital efficiency and fungibility. In the future, GHO may expand across various blockchains with confidence and ease thanks to this.
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Read more: https://thenewscrypto.com/aaves-gho-stablecoin-to-launch-on-arbitrum-expanding-cross-chain-reach/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
