Coinspeaker
Aave’s GHO Stablecoin Restricted to Ethereum and Arbitrum Networks for Now
Stani Kulechov, the founder and CEO of the lending protocol, has shared some exciting updates about Aave and its stablecoin GHO GHO $1.01 24h volatility: 0.3% Market cap: $137.09 M Vol. 24h: $2.21 M . He shared the developments via a Thursday post on X (formerly Twitter), where he noted that the usage of the GHO stablecoin will be limited to two major networks for the time being. That is, Ethereum and Arbitrum.
In the detailed announcement, Kulechov shared that Aave V3 has been deployed across various blockchain platforms. Those include Ethereum, Arbitrum, Base, Avalanche, Polygon, Optimism, Metis, Scroll, Gnosis, and BNB Chain. The wide variety of compatible blockchains showcases the platform’s growing influence within the DeFi space.
GHO Stablecoin Launches on Ethereum and Arbitrum
As earlier mentioned, the deployment of GHO has been limited to Ethereum and Arbitrum networks, at least for now. However, the reason for this priority may not be far from the robustness of their infrastructure and the huge number of users that they attract.
Ethereum, for instance, has arguably one of the biggest ecosystems of decentralized applications (dApps). Therefore, it is an ideal launchpad for GHO. Arbitrum, on the other hand, offers a Layer-2 scaling solution that improves transaction speed and lowers costs on the Ethereum network. This makes it a much-coveted option for DeFi projects looking to avoid Ethereum’s gas fees, which are considerably higher.
By prioritizing these two platforms, Aave may have killed two birds with one stone. That is by targeting both an already established sector of the DeFi market and an emerging one.
What Next?
Without a doubt, Aave has carried out GHO’s expansion in a rather conservative manner. However, it is not exactly clear whether there are plans to expand to other networks any time soon.
Going by the recent announcement, though, the community has started speculating that the stablecoin may eventually be made available on other chains supported by Aave V3. That is after the protocol must have perfected its operations on Ethereum and Arbitrum first. Should GHO be made available on other blockchain ecosystems, there is no doubt that Aave’s influence within the stablecoin sector will deepen.
For now, it is expected that Aave will wait to see how GHO performs on these networks, before considering any wider rollouts.
Aave’s GHO Stablecoin Restricted to Ethereum and Arbitrum Networks for Now
