Sonic passes Aave temp check for v3 integration

Sonic, formerly Fantom, has taken the first step in launching Aave’s third-generation lending protocol on its blockchain.

An on-chain temperature check to advance the deployment of Aave v3 on the new Sonic layer-1 network reached quorum on December 27, according to a report. instant vote. The check aimed to gauge community support for the integration of Aave, the largest decentralized financial lending protocol, with Sonic’s blockchain.

Aave Chain, major delegate of AaveDAO, submitted the proposal, which will move to the Aave request for comment stage, allowing for comments from governance members and service providers.

A successful ARFC would unlock a final Aave enhancement proposal or AIP vote to approve shipping Aave v3 to the new Layer 1 network.

Aava dominates the DeFi lending market with $xyz billion in total value locked, according to data from DefiLlama. Launching on L1 would allow Sonic users to leverage a native on-chain credit line and offer liquidity to other investors.

Sonic’s rebranding from his Fantom days could make the rollout process easier. The team, comprised of a roster of veteran builders like Andre Cronje, has already grown Fantom to a “peak TVL of approximately $14.5 billion in 2021.”

The new L1 has also built its blockchain to run 10,000 transactions per second, with monetization fees to attract Web3 developers.

As Aave plans to expand its protocol, it will likely pull its lending marketplaces from Polygon. The DeFi lender cited issues with a proposal from Polygon that would expose Aave’s native collateral to bad debt.

Sandeep Nailwal, co-founder of Polygon accused Aave of bullying the ecosystem and using anti-competitive tactics. Stani Kulechov, founder and CEO of Aave, refuted these claims and stressed that the decision was aimed at protecting user security.