On February 10, following extensive discussions and a successful vote by the Aave community, GHO, the decentralized and overcollateralized stablecoin of the Aave protocol, went live on Base, an efficient and economical Ethereum Layer-2 network developed by Coinbase.
This launch enables users to supply liquidity, bridge assets, and borrow GHO on Base. Building on GHO's previous successful integrations with Ethereum Mainnet and Arbitrum, this expansion underscores Aave’s strategy for cross-chain enhancement through Chainlink technology, confirming GHO's effective operation across multiple platforms. Increasing GHO's accessibility on Base aims to promote broader adoption and innovative use cases. Aave remains a leading decentralized finance (DeFi) protocol, serving over 440,000 users and managing $770 million in net deposits across different networks.
GHO's deployment on Base further leverages the GHO Cross-Chain Architecture endorsed by Aave Governance. This architecture employs Chainlink CCIP to ensure secure cross-chain connectivity and utilizes the Cross-Chain Token (CCT) standard, granting Aave Governance detailed oversight of cross-chain operations, including customizable rate limits and risk management systems to track transaction flows.
Aave Labs Founder Stani Kulechov stated, “The launch of GHO on Base is a crucial development for both GHO and the DeFi ecosystem. By harnessing Base's active community and low transaction fees, along with Chainlink CCIP’s robust security, GHO facilitates new decentralized applications for stablecoins, paving the way for innovation.”
Additionally, Tom Vieira, Head of Product for Base, noted, “GHO enhances traditional financial instruments by offering transaction costs below one cent and near-instant settlement speeds. This capability will revolutionize financial interactions in an increasingly globalized economy.”
Johann Eid, Chief Business Officer of Chainlink Labs, expressed excitement about GHO's introduction to Base, highlighting its role in advancing a more interconnected DeFi landscape through Chainlink CCIP and the CCT standard.
Key features of GHO on Base include:
- Initial Supply and Borrow Caps: The Supply Cap is set at 2.5 million, and the Borrow Cap at 2.25 million.
- Smart Contracts: Developed by Aave Labs, these contracts include Chainlink CCIP for interoperability and integration with Aave V3, supported by comprehensive testing and evaluations by Certora.
- Risk Assessment: Tailored risk parameters established by Chaos Labs and Llama Risk, with an initial bridge cap of $25 million.
- Liquidity Development: ALC has initiated efforts to build initial GHO liquidity through potential incentives and partnerships.
- Collaboration within the Ecosystem: ACI has engaged with various teams on Base to optimize support and utilize existing incentive structures from Base and Optimism.
