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 <p class="is-style-lead">Aave Labs has published a new governance proposal for integrating the GHO stablecoin across multiple blockchain networks.</p>
 <p>In a forum post on Jan. 17, Aave Labs, a firm behind the Aave protocol, revealed a new governance proposal to integrate the GHO stablecoin across multiple blockchains. The initiative, as outlined by Aave Labs, is geared towards “enhancing GHO liquidity, accessibility, and interoperability while maintaining security and stability.”</p>
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   Example of CCIP implementation | Source: Aave
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 <p>Aave Labs particularly proposes utilizing Chainlink‘s Cross-Chain Interoperability Protocol (CCIP), a solution for both communication and interaction between different blockchain networks, noting that GHO is currently limited for wide use as it is primarily accessible only via minting on the Ethereum mainnet, representing a “significant constraint in its potential reach and utility across defi.”</p>
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  <p>“We believe the future of GHO is to become a multichain asset where users can interact across various networks using GHO.”</p>
  <p>Aave Labs</p>
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 <p>Upon approval by the Aave <a rel="noopener noreferrer nofollow" title="community" href="https://thebittimes.com/tag/community.html">community</a>, the <a rel="noopener noreferrer nofollow" title="proposal" href="https://thebittimes.com/tag/proposal.html">proposal</a> outlines that each selected network, picked by Aave DAO, will host a “canonical version of GHO” alongside a facilitator, an entity responsible for minting and burning GHO tokens controlled by Aave Governance. These facilitators will manage facilitator buckets and facilitate the onboarding of GHO <a rel="noopener noreferrer nofollow" title="liquidity" href="https://thebittimes.com/tag/liquidity.html">liquidity</a> from Ethereum. The total <a rel="noopener noreferrer nofollow" title="liquidity" href="https://thebittimes.com/tag/liquidity.html">liquidity</a> across chains will be constrained by the amount of GHO tokens locked on Ethereum. However, the <a rel="noopener noreferrer nofollow" title="proposal" href="https://thebittimes.com/tag/proposal.html">proposal</a> does not provide a clear timeframe for its implementation.</p>
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  <figcaption class="wp-element-caption">
   GHO price in USD | Source: CoinGecko
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 <p>The initiative comes at a time when GHO has struggled to regain its peg to $1, a value it lost since its launch in July 2023. GHO is described as a decentralized multi-collateral <a rel="noopener noreferrer nofollow" title="stablecoin" href="https://thebittimes.com/tag/stablecoin.html">stablecoin</a>, predominantly backed by Ethereum (ETH), ETH-staking derivatives, and Wrapped Bitcoin (WBTC). As of press time, GHO is priced below the $0.98 mark, according to data from CoinGecko.</p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/aave-community-mulls-new-proposal-to-increase-liquidity-for-gho-stablecoin-tbt76967.html">https://thebittimes.com/aave-community-mulls-new-proposal-to-increase-liquidity-for-gho-stablecoin-tbt76967.html</a></p>

Aave community mulls new proposal to increase liquidity for GHO stablecoin

TheBitTimes

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