LlamaRisk supports the cross-chain launch of staked GHO. Facilitated by two access routes, namely pre-provisioned sGHO liquidity on Layer 2s and bridging via Chainlink CCIP. Users will have access to the assets’ native Savings Rate from their chain of choice, with sGHO maintaining the single ERC-4626 Ethereum vault for uniform accounting and yield generation.
The core infrastructure enabling cross-chain sGHO is Chainlink’s CCIP bridging mechanism, which facilitates the preloading of sGHO on L2’s for instant smaller swaps from GHO to sGHO (‘fast lane’) and larger swaps via direct CCIP bridging (‘slow lane’).
The core components across each L2 include:
- Instant swap system: Facilitates instant swaps for users depositing GHO on L2s like Arbitrum, receiving sGHO, and atomic swaps for users depositing stablecoins are enabled by the GhoRouter. Pool liquidity is pre-seeded and rebalanced via CCIP. Accurate share pricing between accepted deposit assets and sGHO is managed by Chainlink price feeds. This design enables more timely and efficient swaps for users, with sGHO exchange rate denoted in GHO.
- Chainlink CRE workflow: Automates the rebalancing process, with accumulated GHO sent back to mainnet, deposited into the sGHO vault, and minted sGHO bridged back to the L2 deployment. The core consideration for bridged sGHO relates to the efficient management of available deposit liquidity for users to instantly receive sGHO and enough withdrawal liquidity for redemptions. The CRE workflow triggers the sweep and replenishment once a threshold or a time interval is reached. Proper management of these triggers will be necessary, adjusting with user demand to ensure the instantaneous flows are maintained.
- Cross Chain Vault Adapter: The adapter facilitates sGHO minting/redemptions for both paths, with GHO deposits and transfers to the sGHO vault performed periodically for the fast lane and on-demand for the slow lane. The vault thus plays an important role in asset transfers. Proper supply cap management will be critical given these two varying paths to ensure that minting/redemption processes do not fail. Mitigation measures described in the post (pre-flight check, fast path immunity, defensive receiver logic with three retries, safety margin threshold, proactive monitoring alerts) will help to ensure it.
- CCIP Router: The core bridging mechanism facilitates cross-chain transfers between mainnet and L2s. Key features of the bridge include inbound/outbound limits that govern liquidity movement and transfer latency for larger transfers, which vary between v1 (~40 min round trip) and v2 (~5 min for v2 with the Fast Confirmation Rule). This bridging mechanism is known to Aave with several assets onboarded using it for their cross-chain representations.
An additional architectural design that should also be highlighted includes how bridging fees are handled. For reference, CCIP message fees are covered differently across each leg of the transfer. On the user-initiated leg (L2 to mainnet), fees are paid by the user in GHO (an accepted CCIP fee token). On the return leg, the Receiver Contract on mainnet must maintain a fee buffer, either through an ETH reserve topped up via periodic GHO conversions or by configuring GHO directly as the fee token for that leg. The DAO thus plays a critical role in influencing adoption, given it retains the option to set the user-side fee to zero and absorb bridging costs.