Aave Developers Launch GHO Stablecoin on Arbitrum Network

The decentralized autonomous organization behind the development of the Aave DeFi protocol has launched the GHO stablecoin on the Arbitrum L2 solution network, as reported by The Block.

“The multi-collateral stablecoin, native to the Aave protocol, will utilize the Chainlink Cross-Chain Interoperability Protocol (CCIP), an industry standard. Initially rolling out on Arbitrum, it will gradually expand to other networks over time,” the developers noted.

According to them, the “cross-chain expansion strategy” also aims to reduce transaction fees. This approach is intended to make GHO more liquid and attractive to users, “opening up new use cases.”

The launch of the decentralized stablecoin took place nearly a year ago, enabling the borrowing of assets against cryptocurrency collateral.

The issuance of the coin is carried out by community-approved intermediaries known as “facilitators.” The first of these was the Aave v3 market on Ethereum.

At the time of writing, the TVL of the leading lending platform exceeds $12.5 billion.

Earlier, Aave Labs unveiled the roadmap for the fourth version of the protocol. The latest version is expected to be built on a “completely new architecture.”