Aave

Uniswap

Optimism

Balancer

Aave, a decentralized finance (DeFi) platform, has published a governance proposal to integrate Chainlink’s Cross-Chain Interoperability Protocol (CCIP) for secure cross-chain transfers of its GHO stablecoin.&nbsp; 
<h2 id="aave-wants-to-integrate-chainlink-s-ccip-for-cross-chain-gho-transfers">Aave Wants To Integrate Chainlink’s CCIP For Cross-Chain GHO Transfers</h2> 
The suggestion, floated by Aave Labs, the lending and borrowing protocol’s developer, <a class="editor-rtfLink" href="https://governance.aave.com/t/arfc-gho-cross-chain-strategy/16291" target="_blank" rel="noopener nofollow">says</a> the CCIP integration addresses the current limitations of its algorithmic stablecoin, GHO, if approved by the community. As it is currently constituted, the stablecoin is primarily accessible only via minting on Ethereum or through secondary markets. 
According to CoinMarketCap&nbsp;<a class="editor-rtfLink" href="https://coinmarketcap.com/currencies/gho/#Markets" target="_blank" rel="noopener nofollow">data</a>, GHO recorded a trading volume of around $1.6 million in the past 24 hours. At the same time, GHO is available in several secondary markets, including Uniswap v3 and Balancer v2 on Ethereum.&nbsp; 
<img loading="lazy" decoding="async" class="size-full wp-image-275425" src="https://bitcoinist.com/wp-content/uploads/2024/01/Screenshot511.png?resize=730%2C332" alt="GHO markets | Source: CoinMarketCap" width="730" height="332" srcset="https://bitcoinist.com/wp-content/uploads/2024/01/Screenshot511.png?resize=730%2C332?w=730 730w, https://bitcoinist.com/wp-content/uploads/2024/01/Screenshot511.png?resize=730%2C332?w=640 640w" sizes="(max-width: 730px) 100vw, 730px" data-recalc-dims="1"> 
However, considering its role in DeFi and Aave, this volume is relatively lower. DAI, the algorithmic stablecoin managed by MakerDAO, already boasts a&nbsp;<a class="editor-rtfLink" href="https://coinmarketcap.com/view/stablecoin/" target="_blank" rel="noopener nofollow">market cap</a>&nbsp;of over $5.3 billion, with trading volume in the past 24 hours exceeding $124 million.&nbsp; 
Technically, Chainlink’s CCIP offers a framework enabling secure cross-chain communication between multiple blockchains. Through this solution, incorporating protocols can transfer assets and data across different protocols. In this way, CCIP seems to be a secure alternative to bridges that act as channels for moving assets across blockchains but have been targeted on multiple occasions, leading to loss of user funds.&nbsp; 
By implementing CCIP, Aave aims to transform GHO into a multichain asset, enabling stablecoin users to interact with it across various blockchain networks. In this assessment, this integration will significantly enhance GHO’s liquidity, accessibility, and interoperability. All this will likely lift GHO the stablecoin and liquidity ranking, further boosting Aave’s total value locked (TVL). 
<img loading="lazy" decoding="async" class="size-full wp-image-275426" src="https://bitcoinist.com/wp-content/uploads/2024/01/Screenshot512.png?resize=1024%2C470" alt="Aave TVL | Source: DeFiLlama" width="1024" height="470" srcset="https://bitcoinist.com/wp-content/uploads/2024/01/Screenshot512.png?resize=1024%2C470?w=1145 1145w, https://bitcoinist.com/wp-content/uploads/2024/01/Screenshot512.png?resize=1024%2C470?w=640 640w, https://bitcoinist.com/wp-content/uploads/2024/01/Screenshot512.png?resize=1024%2C470?w=768 768w, https://bitcoinist.com/wp-content/uploads/2024/01/Screenshot512.png?resize=1024%2C470?w=980 980w, https://bitcoinist.com/wp-content/uploads/2024/01/Screenshot512.png?resize=1024%2C470?w=750 750w, https://bitcoinist.com/wp-content/uploads/2024/01/Screenshot512.png?resize=1024%2C470?w=1140 1140w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1"> 
According to DeFiLlama <a href="https://defillama.com/protocol/aave" target="_blank" rel="noopener nofollow">data</a> on January 18, Aave manages over $7.3 billion of assets and deploys them in 10 chains, including Polygon, Avalanche, and several Ethereum layer-2 options like Optimism and Arbitrum. 
<h2 id="will-link-break-above-17">Will LINK Break Above $17?</h2> 
The integration of CCIP will be a crucial development in the Aave and Chainlink ecosystems. Though the move could boost GHO liquidity and improve access, LINK and AAVE may also benefit.&nbsp; 
Related Reading: <a href="https://bitcoinist.com/bitcoin-etfs-face-regulatory-roadblock-in-singapore/" target="_blank" rel="noopener ">Bitcoin ETFs Face Regulatory Roadblock In Singapore – Here’s Why</a> 
CCIP is designed to incentivize integrating protocols, such as Aave, to pay fees using LINK, the native token of Chainlink. Using this token means they are not surcharged. If they choose to pay using AAVE, Aave’s native governance token, they will be subject to a 10% surcharge fee.&nbsp; <a href="https://www.tradingview.com/x/iPW3V43y/" rel="nofollow noopener" target="_blank"><img loading="lazy" decoding="async" class="size-full" src="https://www.tradingview.com/x/iPW3V43y/" alt="Chainlink price trending upward on the daily chart | Source: LINKUSDT on Binance, TradingView" width="1233" height="592"></a> 
LINK is firm and trading at near December 2023 highs. Thus far, the token is up 170% from September 2023 lows. A break above $17 may push the token to fresh highs to continue the solid march up from H2 2023.

Aave Seeks To Integrate Chainlink’s CCIP For GHO Transfers

Table of Contents

Bitcoinist

Other articles published on Jan 18, 2024

Robinhood Goes Shiba Crazy, Buys 230 Billion SHIB In 24 Hours – Here’s The Scoop

Refik Anadol Unveils Groundbreaking Multi-Sensory AI Art at Davos

Tron’s Justin Sun Accumulates AAVE, SHIB, & LINK, Among Many Others

Mercuryo launches personalized private crypto banking solution, Mercuryo Pro

Crypto Exchange WOO X Raises $9 Million from Top Market Makers

AI vs humanity – a battle of identity

Join our free newsletter for daily crypto updates!