GhoBox

GhoBox is a contract that simplifies managing liquidity across multiple blockchains without shifting collateral. Users provide liquidity to Aave on any chain and delegate borrowing power to GhoBox to allow it to manage loans on their behalf. Through the Cross-Chain Interoperability Protocol (CCIP), GhoBox coordinates loans across different chains. It handles all steps – borrowing, burning, and minting GHO tokens – making it easier for users to use their assets on various chains without moving their collateral.

How It Works: A Running Example:

Consider Alice, who wants to leverage her assets across Ethereum and Polygon without moving her collateral. Here's how GhoBox helps her:

Step 1: Supplying Liquidity to Aave Alice’s Action: Alice supplies liquidity to the Aave protocol on both Ethereum and Polygon.

Step 2: Delegating Credit to GhoBox Alice’s Action: She delegates the credit for GHO borrowing to the GhoBox instance on Ethereum and Polygon.

Step 3: Requesting a GHO Loan Alice’s Action: Alice needs a total of 1000 GHO on Ethereum. She decides to borrow 600 GHO against her Ethereum liquidity and 400 GHO against her Polygon liquidity. Process: She requests the loan via GhoBox on Ethereum, specifying the amounts from each chain.

Step 4: Coordinating Loan Across Chains Using CCIP GhoBox’s Role: GhoBox on Ethereum coordinates with the GhoBox on Polygon for Alice's loan.

Step 5: Loan Execution on Polygon GhoBox’s Action: GhoBox on Polygon takes out a 400 GHO loan on behalf of the user and immediately burns it.

Step 6: Confirmation via CCIP GhoBox’s Action: GhoBox uses CCIP to confirm the burning of GHO on Polygon.

Step 7: Minting and Loan Fulfillment on Ethereum Final Action: After confirmation, GhoBox on Ethereum borrows 600 GHO on behalf of the user and mints 400 GHO (total 1000 GHO) for Alice.

Outcome for Alice: Alice now has 1000 GHO on Ethereum, using her combined liquidity from Ethereum and Polygon, without transferring her assets.