Why would I bridge GHO?
GHO was initially only available on Ethereum Mainnet, but has always been designed to be a multi-chain stabelcoin. It is now available on Arbitrum, and will be added to other networks as decided by Aave Governance. The expanded availability of GHO beyond Ethereum mainnet aims to increase accessibility, lower transaction costs, enhance the user experience, and improve liquidity.
How does GHO bridge between chains?
For secure cross-chain transfers between Ethereum and L2s like Arbitrum, GHO uses a lock-and-mint model enabled by Chainlink CCIP, where tokens are locked on Ethereum while an equivalent amount is minted on the other network, keeping the total supply constant. As additional chains are supported, transfers between non-Ethereum chains will use a burn-and-mint model enabled by Chainlink’s CCIP for maximum capital efficiency and fungibility, while still being backed by reserves on Ethereum. This achieves security and flexibility for GHO's future expansion across multiple blockchains. Backed by Chainlink's battle-tested infrastructure, CCIP is widely adopted across DeFi and capital markets and supports existing Aave deployments, helping to achieve smooth and secure cross-chain expansion for GHO.
Bridging GHO can be performed through protocol smart contracts or through a frontend such as Aave Labs interface by performing the following steps:
Step 1: Connect Wallet
To begin, press ‘Connect Wallet’ and select the Ethereum wallet provider corresponding to the wallet holding GHO tokens.
Step 2: Open Bridge mMdal
Once the bridge modal by selecting 'Bridge GHO' in top navigation bar .
Step 2: Enter Transfer Details
Enter the amount of GHO you wish to transfer, the source / destination network, and a recipient address (if different than connected wallet).
The interface will display key parameters, including fees and estimated transfer times.
Step 3: Confirm the Transaction
Review the transfer details, then confirm the transaction in your connected wallet.
The interoperability protocol will burn/lock tokens on source network and mint/unlock on the destination network to the designated recipent address.