Ava Labs announced on Tuesday (2) the launch of its GHO stablecoin on the Arbitrum network. Arbitrum is the main Layer 2 network of Ethereum in terms of total value locked (TVL).
The initiative aims to expand the use of GHO by offering faster transactions, reduced fees, and increased liquidity to users. According to the project team, the integration of GHO with other networks marks a significant step in Ava Labs’ multichain expansion strategy.
“Integrating with other networks will reduce fees, offer faster transactions and improve liquidity, making GHO more attractive to users and opening up a variety of new use cases, including digital payments with GHO,” said Stani Kulechov, founder and CEO of Ava Labs.
To incentivize GHO adoption on Arbitrum, the Arbitrum DAO has allocated 750,000 ARB tokens (equivalent to $582,300). Aave users can now mint GHO using collateral deposited in the Aave v3 protocol on Arbitrum.
According to data from CoinGecko, GHO is currently the 21st largest stablecoin with a market cap of $89.1 million.
Stablecoin from Ava Labs on Arbitrum
The launch of GHO on Arbitrum is the first milestone in the cross-chain expansion strategy that the Aave community approved in May with 100% support. This strategy aims to overcome the current limitation of GHO, which is mainly only accessible through the Ethereum mainnet or secondary markets.
To facilitate this expansion, Ava Labs is leveraging Chainlink’s cross-chain interoperability protocol (CCIP). Each GHO deployment will be backed by reserves held on Ethereum, ensuring security and trust.
“While GHO will be issued on the Ethereum mainnet, the cross-chain strategy enabled by Chainlink CCIP will open doors to integration opportunities and new use cases,” Ava Labs said.
Aave v3 is currently live on 12 networks, including layer 1s like Ethereum, Avalanche, BNB Chain, Fantom, and Harmony, and layer 2s like Base, Arbitrum, Optimism, Gnosis, Scroll, Metis, and Polygon.
GHO’s deployment on Arbitrum will undergo rigorous evaluation, before selecting additional networks to host the stablecoin through community governance. In April, AAVE holders voted to select Arbitrum for the first cross-chain rollout of GHO, with 87.5% of the vote, followed by Avalanche with 12.2%.
In addition to expansions on EVM-compatible networks, Avara, the development company behind Aave, is planning to launch Aave on new networks. On May 1, the Aptos Foundation published a proposal for the first launch of Aave v3 on a non-EVM network to take place on Aptos.
Source: https://www.criptofacil.com/ava-labs-lanca-stablecoin-gho-na-arbitrum/
