Following a vote by Aave, a decentralized autonomous group (DAO) managed by group members that proposes and manages modifications to the lending protocol, the GHO stablecoin was deployed on the Arbitrum community.
Aave’s DAO additionally plans to launch the GHO stablecoin on a number of networks over time, however selected to deploy GHO on Arbitrum to reap the benefits of the low transaction prices and elevated bandwidth of the Layer 2 community.
The choice to regularly roll out the stablecoin to extra networks was primarily based on safety and danger administration components. This allowed The DAO to check the waters earlier than increasing GHO’s presence to different blockchain ecosystems.
Chainlink’s CCIP makes multi-chain GHO attainable
The CCIP Chainlink protocol is the interoperability layer that permits Aave DAO emigrate the GHO stablecoin, initially launched on the Ethereum community, to Arbitrum and different networks sooner or later.
Stablecoin interoperability is achieved by means of two mechanisms generally known as the write-and-mint mannequin and the lock-and-release function, which locks or writes GHO tokens on the unique supply chain after which releases them on the brand new chain.
On the topic: Chainlink information streams run on the Avalanche community
When GHO stablecoins are switched from the Ethereum community to a different blockchain, the GHO tokens are locked in a sensible contract generally known as a “Storage Contract” on Ethereum after which awaited by an middleman on the goal blockchain.
When GHO is linked from one other blockchain community to the Ethereum community, the GHO tokens on the alternate chain are burned and an equal quantity is launched from the Vault contract on the Ethereum blockchain community.
If neither chain is Ethereum, the middleman will burn GHO tokens on the primary chain and mint new ones on the second chain.
Chainlink and Arbitrum: A rising partnership
The connection between Chainlink and Arbitrum started in 2020 and later advanced right into a joint partnership to facilitate cross-chain growth of decentralized functions.
Since then, Chainlink has established itself as one of many main blockchain-oracle interoperability networks, operating experimental blockchain worth motion pilots with world establishments such because the SWIFT interbank messaging system.
Constructing on this momentum, Chainlink’s CCIP continued for use and distributed in 2024, and combination community payment income rose to $377,724 in March, primarily as a consequence of exercise on Arbitrum.
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