[TEMP CHECK] GHO Gas Token Framework


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.

6 Likes

Adding L2’s gas functionality into GHO would be a very positive addition.

If there is something to add from me, it would be to try and develop with the MetaMask team in conjunction with the L2 team of choice, so this functionality to be easy and ready to use for the majority of users from the get go.

LlamaRisk endorses this framework, noting that technical details are still emerging at this stage. The proposal does not disrupt current systems; rather, it introduces supplementary functionality that builds on the existing GHO cross-chain strategy. Notably, the planned native bridge will enable GHO to serve as a gas token along with additional potential functions, and is anticipated to further bolster both active usage and the overall supply of the stablecoin—recently marked by GHO reaching a supply milestone of $200 million. As these integrations progress, we will continue monitoring GHO for any changes in stability and transaction flows across various networks.

1 Like

Adding GHO as a gas token has huge potential - we’re very much in favour of making gas as simple as possible to pay for (or even completely abstracting it away) and this is a step in the right direction. We’d like to see @AaveLabs use its BD power to try and get as many L2 networks as possible to use GHO as a gas token and continue GHO’s growth.

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As Michigan Blockchain, we support allowing users to pay gas fees on L2 networks using GHO, Aave’s stablecoin. First of all, this will make GHO more useful beyond lending/borrowing on Aave, which will increase its adoption and market cap. Since Aave makes revenue off GHO, the more mainstream adoption of GHO will increase Aave’s profits.

Using stablecoins as a gas token makes sense as it eliminates volatility of gas cost, which will ensure predictable transaction fees, especially in very volatile market situations. GHO will become a foundational economic unit used for both transaction and DeFi. By making GHO the gas token, Aave positions itself as a core infra provider and not just a lending protocol.

Also, some protocols subsidize transaction fees for users so it may be beneficial for them to have a stablecoin alternative as a gas token compared to a volatile asset like ETH. This proposal aligns with Aave’s cross-chain strategy, where GHO serves as a universal medium of exchange across ecosystems.

-Kerem Dillice and nsks

This TEMP CHECK proposal has been escalated to TEMP CHECK snapshot.

1 Like