Sonic, formerly Fantom, has passed the first phase of launching Aave’s third-generation lending protocol on its blockchain.
An on-chain temperature test to advance Aave v3 deployment on the newly launched Sonic Layer 1 network reached a quorum on December 27, according to a snapshot vote. The aim of the audit was to assess community support for integrating Aave, the largest decentralized finance lending protocol, into Sonic’s blockchain.
Aave Chain, a key delegate to AaveDAO, submitted the proposal, which moves into the Aave Request for Comment phase and allows for feedback from governance members and service providers.
A successful ARFC would unlock a final Aave improvement proposal or AIP vote to approve the delivery of Aave v3 on the new Layer 1 network.
According to DefiLlama data, Aava dominates the DeFi lending market with a total value of xyz billion. Launching on the L1 would allow Sonic users to access the chain’s native credit line and offer liquidity to other investors.
Renaming Fantom-era Sonic could simplify the deployment process. The team, which includes experienced developers like Andre Cronje, previously brought Fantom to a “peak TVL of approximately $14.5 billion in 2021.”
The new L1 has also built its blockchain to perform 10,000 transactions per second, with fee monetization to attract Web3 developers.
As Aave considers extending its protocol, it will likely withdraw its lending markets from Polygon. The DeFi lender cited issues with a Polygon proposal that would put Aave native collateral at risk for bad debt.
Polygon co-founder Sandeep Nailwal accused Aave of bullying the ecosystem and…
