Following a successful community vote, leading DeFi protocol Aave launched its algorithmic U.S. dollar-pegged GHO stablecoin on Base, the Ethereum layer-2 incubated by Coinbase.
Launched in 2023, GHO hit a $2.5 million market cap in two days and stands at over 191 million in circulation. Following Aave Founder Stani Kulechov’s vision for GHO’s cross-chain expansion powered by Chainlink’s Cross-Chain Interoperability Protocol (CCIP), GHO launched on Arbitrum last July.
As the standard for onchain finance, Chainlink has enabled over $19 trillion in transaction value and provides vital infrastructure for securing tokenized real-world assets and stablecoins throughout the growing multi-chain economy. CCIP transfers tokens with the highest level of cross-chain security backed by a separate Risk Management Network.
The GHO Cross-Chain Architecture now leverages CCIP’s Cross-Chain Token (CCT) standard to facilitate GHO’s interoperability across Ethereum, Arbitrum, and Base, while giving Aave Governance precise control over cross-chain functions with features like configurable rate limits and programmable token transfers.
In an official announcement, Kulechov called GHO’s launch on Base’s secure, cost-effective layer-2 a “pivotal moment” for the entire DeFi ecosystem.
“By leveraging Base’s vibrant community, low fees, and developer-friendly environment, and with Chainlink CCIP’s unmatched cross-chain security, GHO enables new decentralized stablecoin applications, unlocking their potential for broader use and setting the stage for a new era of innovation,” he said.
Tom Vieira, Head of Product for Base, emphasized how GHO’s availability on Base could advance stablecoin adoption.
“Stablecoins like GHO offer clear benefits over traditional financial instruments,” he said.
“With Base, stablecoin transactions can cost less than a cent and settle at the speed of the internet. In an increasingly global world, moving money in seconds, rather than days, will shape the future of finance.”
“As one of our closest partners, we’re very excited to see Aave’s GHO stablecoin launch on Base and for the benefits of the innovative GHO stablecoin to be brought to a new community of hundreds of thousands of DeFi users,” added Chief Business Officer of Chainlink Labs, Johann Eid.
“Powered by Chainlink CCIP and the CCT standard, GHO on Base marks a significant milestone on the journey towards a more interconnected and accessible DeFi ecosystem.”