Following open discussion and a successful Aave community vote, GHO, the decentralized, overcollateralized stablecoin native to the Aave protocol, is now available on Base, the secure, low-cost, builder-friendly Ethereum Layer-2 network incubating at Coinbase. Users can now supply liquidity, bridge, and borrow GHO on Base. This launch, along with GHO's earlier successful launches on Ethereum Mainnet and Arbitrum, validates Aave’s cross-chain expansion strategy powered by Chainlink, demonstrating GHO’s seamless operation across networks. Expanding GHO's availability increases accessibility, fostering wider adoption and new use cases. Aave is the leading DeFi protocol across multiple networks, including Base (home to over 440,000 Aave users and $770M in net deposits). GHO has the opportunity to mirror Aave’s success within Base and other ecosystems.
GHO's expansion to Base builds on the GHO Cross-Chain Architecture adopted by Aave Governance. This architecture utilizes Chainlink CCIP, the standard for secure cross-chain interoperability, and the Cross-Chain Token (CCT) standard to enable GHO interoperability across supported networks: Ethereum, Arbitrum, and Base, giving Aave Governance granular control over cross-chain activity, including features like configurable rate limits, programmable token transfers, and an independent risk management network that monitors transaction flows.
"The launch of GHO on Base marks a pivotal moment, not just for GHO, but for the entire DeFi ecosystem,” said Aave Labs Founder Stani Kulechov. “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."
"We're thrilled to see GHO available on Base," said Tom Vieira, Head of Product for Base. "Stablecoins like GHO offer clear benefits over traditional financial instruments. 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,” said 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.”
Key components of GHO on Base include:
- Initial Caps: The Supply Cap is set at: 2.5M; and the Borrow Cap at 2.25M.
- Smart Contracts: Aave Labs developed and implemented through governance the necessary smart contracts, including Chainlink CCIP for cross-chain interoperability and integration with Aave V3. The proposal payload is supported by smart contract tests on each network and a code review by Certora, an Aave DAO service provider.
- Risk Parameters: Risk and finance service providers Chaos Labs and Llama Risk established risk parameters tailored to Base, with an initial $25 million bridge cap.
- Liquidity: ALC developed a plan to bootstrap initial GHO liquidity, potentially through incentives and partnerships.
- Ecosystem Collaboration: ACI, another Aave service provider, coordinated with teams deployed on Base for support, leveraging existing Base and Optimism incentives.
The information contained in this press release is provided for informational purposes only and does not constitute an offer or representation, express or implied, for the purchase or sale of any product or service. This release may contain forward-looking statements and is subject to change without notice. Neither Coinbase, Avara or Base makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained in this release and neither party shall have any liability for any errors, incompleteness, interruption or delay in the content, or for any actions taken in reliance thereon.
Additional Resources
- You can find relevant documentation and resources about GHO here.
- For more information on the DAO cross-chain strategy and rollout plan, please visit the Aave Community Forum here.
- For more information on Base, go to the official Base documentation.
- For information on Base, please visit here.
Aave Protocol
Aave is a non-custodial, open-sourced decentralized liquidity protocol that allows users to act as depositors and earn passive income, as well as borrow a wide range of digital assets without the need of third-party intermediaries. Core capabilities include risk mitigation features such as supply and borrow caps, and flash loans which allow users to borrow and repay assets within the same blockchain transaction block. GHO is a decentralized, overcollateralized stablecoin that is native to the Aave Protocol. The Aave Protocol is fully governed by the Aave Decentralized Autonomous Organization (DAO). Visit https://governance.aave.com/ to learn more and take part in Aave Governance.
Aave Labs
Focused on decentralized finance, Aave Labs is part of Avara. The team built the Aave Protocol and GHO and is a technical contributor to the Aave Protocol. GHO, the Aave-native stablecoin, is backed by multiple collaterals available in Aave V3 and is designed to serve as the internet payment layer.
About Base
Base is a secure, low-cost, builder-friendly Ethereum L2 built to bring the next billion users onchain.
Base is incubated within Coinbase and plans to progressively decentralize in the years ahead. We believe that decentralization is critical to creating an open, global cryptoeconomy that is accessible to everyone.
Learn more about Base by visiting base.org or reading the developer documentation at docs.base.org.