Aave Proposes Integration of Chainlink’s CCIP for Cross-Chain GHO Transfers
Aave, a decentralized finance (DeFi) platform, has put forward a governance proposal to incorporate Chainlink’s Cross-Chain Interoperability Protocol (CCIP) for secure cross-chain transfers of its GHO stablecoin. The suggestion, made by Aave Labs, addresses the limitations of the current version of GHO and aims to make it more accessible on various blockchain networks. Currently, GHO is primarily available through minting on Ethereum or secondary markets. However, the trading volume for GHO is relatively low compared to other algorithmic stablecoins like DAI. By integrating CCIP, Aave hopes to enhance GHO’s liquidity, accessibility, and interoperability, potentially boosting Aave’s total value locked (TVL).
Benefits for LINK and AAVE
The integration of CCIP will have significant implications for both the Aave and Chainlink ecosystems. While it can improve GHO liquidity and accessibility, it may also benefit LINK and AAVE. CCIP incentivizes integrating protocols like Aave to pay fees using LINK instead of AAVE tokens, which would incur a 10% surcharge fee. This could drive demand for LINK tokens. Additionally, LINK has been performing well recently and is nearing its December 2023 highs. If it breaks above $17, it could continue its upward trend.
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