The deployment of the GHO stablecoin on the Ethereum layer-2 network will leverage Chainlink’s CCIP interoperability protocol.
Following a vote from the Aave decentralized autonomous organization (DAO), a member-controlled community that proposes and manages changes to the lending protocol, the GHO stablecoin has been deployed on the Arbitrum network.
Aave’s DAO also plans to launch the GHO stablecoin on multiple networks over time but chose to deploy GHO on Arbitrum to take advantage of the layer-2 network’s low transaction costs and increased throughput.
The decision to roll out the stablecoin to additional networks in phases was based on security and risk management factors. This allowed the DAO to test the waters before expanding GHO’s presence to other blockchain ecosystems.