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Title: [ARFC] GHO Cross-Chain Launch Author: Aave Labs Date: 2024-05-15

Summary

This snapshot proposes initiating the cross-chain strategy for the GHO stablecoin, the native asset of the Aave Protocol, beginning with the initial expansion to the Arbitrum network. This expansion will utilize Chainlink Cross-Chain Interoperability Protocol (CCIP). After extensive discussions concerning the cross-chain token model, the bridge, and potential networks, we are presenting this vote which gives final snapshot approval on the whole strategy, based on previous discussions and risk parameters provided by Chaos Labs.

Motivation

The current accessibility of GHO, primarily through minting on the Ethereum mainnet or via secondary markets, significantly limits its potential reach and utility within the DeFi landscape. Transitioning to a cross-chain model will enhance GHO’s accessibility and liquidity, appealing to a broader userbase. Additionally, integrating with alternative chains could greatly improve the overall user experience by offering faster transactions and reduced costs, thus making GHO a more attractive financial tool. This shift also presents new opportunities within the ecosystem of each network, allowing access to a wide array of integrations with other protocols and tools, further enriching GHO’s utility and appeal.

Specification

Below are the main actions to address, and the AIP will provide full implementation and details. For a detailed overview of specifications see the ARFC post here.

1. Implement a lock-and-mint model for cross-chain GHO Token, where all liquidity is originated from Ethereum.
2. Deploy an upgradable version of GHO Token on Arbitrum network.
3. Integrate GHO Token with CCIP TokenPool contracts utilizing lock-and-release pool on Ethereum and mint-and-burn pool on Arbitrum.
4. Enroll CCIP TokenPool on Arbitrum as GHO Token Facilitator.
5. Add GHO into the Arbitrum Aave pool as a borrowable asset.
6. Configure CCIP TokenPool Rate Limits and Aggregate Rate Limits.

Next Steps

Once the community votes with a successful snapshot, prepare for AIP.