Title: [TEMP CHECK] GHO Gas Token Framework
Author: @AaveLabs
Date: 2025-02-12
Summary
This framework outlines a general approach for utilizing GHO as the gas token of a network. The framework is designed to be adaptable for any network looking to use GHO in this capacity. Unlike bridging GHO as an ERC-20 token, this framework establishes a structured approach to integrating GHO as a gas token through a native bridge.
The framework uses the canonical network bridge for minting GHO as a gas token. It also explores extensions such as integrating messaging protocols like Chainlink CCIP to align with the existing GHO cross-chain strategy. Additionally, a wrapper contract on Ethereum allows the GHO implementation to be upgraded and extended for future innovations.
Motivation
Stablecoins offer a fast, efficient, and stable means of transferring value on blockchain networks. Decentralized stablecoins like GHO add transparency and censorship resistance. Using GHO as a gas token makes it a core part of the network’s transaction layer, allowing it to function as a standard economic unit. This creates predictable pricing for gas fees, particularly in low-fee networks where transaction costs are often subsidized.
The decision to use a canonical bridge as the primary liquidity pool is based on the unique requirements of deploying GHO as a gas token rather than as a bridged ERC-20, and ties security of token bridging to the underlying network bridge. Messaging protocols generally work with ERC-20 transfers, meaning a custom implementation would be required for network gas tokens. A native bridge allows for a more streamlined approach, embedding gas token bridging into the network’s primary liquidity bridge and does not introduce new attack surfaces or security assumptions.
The framework can be made compatible with Aave’s broader GHO cross-chain strategy by integrating messaging protocols into the native bridge, aligning with the existing cross-chain implementation, where Chainlink CCIP is the canonical messaging layer for GHO as an ERC-20 token.
Specification
The framework defines the architecture for adopting GHO as a gas token across L2 networks. It outlines how the native bridge operates as the primary liquidity pool for GHO minting, embedding security and liquidity management directly into the network’s base infrastructure. The approach limits fragmentation across multiple bridges and reduces dependency on external liquidity providers. Future governance decisions could introduce more granular controls over bridging frameworks to refine security and liquidity strategies.
Instead of locking the framework into any specific messaging protocol, the design remains modular, allowing for future integrations. If messaging protocols become natively supported by canonical bridges, governance can set parameters to manage liquidity distribution and bridging constraints.
The GHO Wrapper contract on Ethereum mainnet provides flexibility for upgrades and extensions without modifying the core bridge infrastructure. The contract has been audited by Pashov Audit Group. It allows for upgrading implementations of the underlying GHO token or supporting additional innovation in the future. This modular design makes it possible to introduce new functionalities without disrupting the existing bridge and minting architecture.
Sourcing liquidity on the destination chain requires careful consideration of how GHO is introduced and maintained in the network. GHO is minted on Ethereum and bridged to the destination chain as needed, meaning liquidity only enters circulation when the remote facilitator puts it into use. This follows GHO’s cross-chain strategy, where all liquidity originates on Ethereum.
Conclusion
This framework lays the groundwork for adopting GHO as a gas token across multiple networks. It provides a structured approach to liquidity management while allowing for future expansions, including governance-controlled messaging integrations, modifications to bridging on Ethereum, and mechanisms to enable liquidity to be pre-minted on destination chains. The Aave community is invited to contribute to refining this framework.