Aave Could Soon Launch GHO Stablecoin on Avalanche and Base

The Aave DAO is preparing to bring its GHO stablecoin to the Base and Avalanche blockchains, following two proposals laid out by the Aave-Chan Initiative (ACI).

Both governance proposals were submitted on Oct. 7, and if consensus is reached, the proposals will move on to a Snapshot vote. If passed, GHO would make its next foray outside Ethereum following its launch on Arbitrum in July.

In both proposals, the ACI said, “Building on this success, it is now time to expand GHO to other networks. However, the lessons learned from the Arbitrum launch highlight the importance of coordinated efforts in several key areas.” ACI cited factors such as smart contract infrastructure, risk parameters, and immediate GHO DeFi integration as lessons taken away from the Arbitrum launch.

GHO is Aave’s native stablecoin and is the 18th largest, with a $158 million market capitalization, according to DeFiLlama. GHO began 2024 with a $35 million market capitalization, which has grown 350% over the last ten months.

The proposal comes less than a week after asset management firm Grayscale announced the launch of its Aave Trust. However, the new fund has commanded little attention so far and is Grayscale’s smallest crypto product by assets under management (AUM), with just $382,000.

The Aave Trust’s slow start seems counterintuitive when compared to Aave’s key metrics. Aave is the second largest protocol in all of DeFi, with a total value locked of nearly $12 billion, and the AAVE token is up 117% in 2024.