Aave Protocol’s GHO Stablecoin Goes Live on Arbitrum

After a vote by the Aave Decentralized Autonomous Organization (DAO), the GHO stablecoin has been deployed on the Arbitrum network, chosen for its low transaction costs and increased throughput. The Aave DAO plans to gradually launch GHO on multiple networks, prioritizing security and risk management by testing the stablecoin's performance on Arbitrum first.

Chainlink's Cross-Chain Interoperability Protocol (CCIP) facilitates this multi-chain deployment, enabling the migration of GHO from Ethereum to other networks. When GHO is moved from Ethereum to another blockchain, tokens are locked in an ETH-based Vault Contract and minted on the target blockchain. Conversely, tokens are burned on alternative chains and released from the Vault Contract when bridging back to Ethereum.