Hassan Maishera
The Aave team announced via X on Tuesday that its GHO stablecoin has officially launched on the Arbitrum network, the largest Ethereum L2 by value-locked and monthly active wallets.
GHO is powered by Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and has become a borrowable asset in the Aave Arbitrum pool, providing additional use cases for the stablecoin.
Through a clever lock-and-mint model enabled by CCIP, every GHO token minted on an L2 like Arbitrum will have an equivalent amount locked up on Ethereum, keeping the total supply in check, the team added.
Aave protocol is a decentralized, open-source, and non-custodial money market protocol. Depositors earn interest by providing liquidity to lending pools, while borrowers can obtain overcollateralized loans by using the liquidity from these pools. AAVE is trading at $92.00 per token, down by 6% in the last 24 hours.
Arbitrum is a suite of scaling solutions on Ethereum that utilize Optimistic Rollup. It allows users to enjoy faster speed and cheaper transaction costs when interacting with web3 dApps. ARB, the native coin of the Arbitrum network, is up by 1% today and is trading at $0.7868.
