[ARFC] Launch remoteGSM on Arbitrum

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title: [ARFC] Launch remoteGSM on Arbitrum
author: @TokenLogic
created: 2026-05-28

Summary

In preparation for launching sGHO on the Arbitrum network, this publication proposes deploying a new instance of remoteGSM, allowing users to exchange stataUSDC <> GHO.

Motivation

The GSM has proven to be a capital-efficient way to seed and defend GHO's peg, with demand that materialises organically. The remoteGSM deployed on Plasma is filled to its full 40M exposure cap and now represents more than 13% of the circulating supply of GHO, clear evidence that users will mint GHO directly on the chain they want to use it and drive local demand.

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This proposal replicates that playbook on Arbitrum using USDC. Alongside the upcoming sGHO launch, the remoteGSM gives GHO a deep, local peg anchor on one of DeFi's largest stablecoin markets from day one. It launches with a conservative 20M exposure cap as a starting point, which the GhoGsmSteward can scale up as demand fills it, the same path Plasma walked to 40M.

Specification

The sections below provide the necessary technical details and some high-level context guiding the flow of funds and steward controls.

1. Update CCIP Bridge Limit Configuration

As GHO has grown and matured, we see a need to increase the rate-limits imposed by CCIP. The table below shows the current configuration and the new configuration for all lanes (ie: across all networks) after the upgrade.

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Additionally, the Ethereum ↔ Arbitrum rate limits will be temporarily increased to 155M, allowing a single transaction to bridge 50M of GHO. After the bridge succeeds, the limits will be restored to the newly proposed 5M and 1,500 and the Bucket Capacity to 100M as shown above. This was the same approach that was taken when bridging 50M GHO to Plasma.

2. Deploy GhoReserve

When Minting and bridging unbacked GHO to new networks, the GhoReserve is deployed as the final destination for receiving those funds. This allows the GHO to be held in isolation until being assigned to an intended use case, such as funding remoteGSM or depositing into the Aave Protocol.

The ability to Mint → Bridge → Fund the GhoReserve is only possible via AIP, and for avoidance of doubt, not possible via the Gho Steward admin role. The Gho Steward can set a limit on how much GHO an entity, such as each remoteGSM, can draw.

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3. Deploy stataUSDC remoteGSM

With GHO held in the GhoReserve, the remoteGSM enables users to exchange stataUSDC to GHO, equivalent to the exchange rate minus any fee when GHO enters/exits the circulating supply. With the exception of the Exposure Cap, all other parameters are to match those of the other stataUSDC GSM. Any changes between this forum comment and the AIP's submission for a vote will be reflected in the AIP itself to ensure consistency with the USDC GSM on Ethereum.

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USDC deposits into stataUSDC trigger GHO transfers using Arbitrum-held inventory via GSM.

When deploying and funding GhoReserve and remoteGSM on Arbitrum, the current parameters of Ethereum and Plasma GSM will remain unchanged, ensuring that the GHO system configuration matches the configuration used throughout the testing phase prior to deployment.

4. Deploy GHO GSM Steward

The Gho Steward admin role is extended with new functionality for updating and maintaining the remoteGSM parameters.

GhoGsmSteward

updateGsmExposureCap: ±100%
updateGsmBuySellFees: ±0.5% per side (FixedFeeStrategy)

The steward is callable only by the GHO steward SAFE (Risk Council).

Additionally, the Gho Steward admin will be granted the LIMIT_MANAGER_ROLE on the Arbitrum GhoReserve in order to be able to update the draw limit of the remoteGSM.

5. Mint and bridge 50,000,000 GHO

Mint 50M GHO from a newly deployed GhoDirectFacilitator and bridge to Arbitrum via CCIP to Aave DAO’s Collector Contract (Treasury).

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To receive the 50M GHO on Arbitrum, a new instance of the AaveGhoCCIPBridge will be deployed and configured to forward all received tokens to the Collector. The same approach was used for the Plasma deployment.

6. Fund GhoReserve from Collector

From the Collector Contract on Arbitrum, transfer 50M GHO to the GhoReserve deployed on Arbitrum for use by the GSM.

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Disclaimer

TokenLogic is an active service provider to the Aave DAO, the beneficiary of stream 100072 and the KPI as outlined in this publication. The scope of this engagement is available via this forum proposal.

TokenLogic supports and maintains an independent delegate voting platform within the Aave community.

TokenLogic and associated entities have no undisclosed material conflicts of interest at the time of submission.

Next Steps

Gather feedback from the community.
If consensus is reached on this ARFC, escalate this proposal to the Snapshot stage.
If the snapshot outcome is YAE, escalate this proposal to the AIP stage.