Aave Community Approves Deployment Of V3 On Metis Network

  • The DeFi lending protocol aims to increase market liquidity through its debut on the Metis Network.
  • The tokens associated with Aave and Metis saw a minor surge in price following the latest development.

The Aave community has rallied behind a proposal to deploy its version 3 (V3) on the Matis Network, a layer 2 Ethereum ecosystem. The DeFi lending platform’s V3 will go live on Metis Andromeda mainnet, which is the fifth-largest layer 2 network with a total value locked (TVL) of over $121 million.

According to Aave’s proposal overview, the proposal to deploy on Metis received an overwhelming response from the DeFi lending protocol’s community. With more than half a million yes votes and zero votes against, the proposal has been executed. As per Aave’s governance forum, WETH, USDC, USDT, DAI, and METIS will be listed following V3’s debut in Metis.

Aave aims to leverage Metis network’s framework for open, decentralized, and trustless collaboration between individuals, dApps, and Web2 organizations transitioning to Web3. Gauntlet and Chaos Labs provided a comprehensive risk analysis and recommendations for the upcoming deployment.

Aave stated the following:

This architecture will combine the EVM Compatibility and fast transaction confirmation of Optimistic Rollups, with the censorship-resistance, security, and fast transaction finality enabled by zero-knowledge proofs.

Aave V3’s deployment on Metis Andromeda mainnet, which is expected to take almost four weeks, will include a liquidity incentivization campaign. As per this campaign, 100,000 Metis tokens will be allocated strategically over a six month period to encourage “ strong market depth and sticky liquidity”.

Data from CoinMarketCap shows that the tokens associated with Aave and Matis Network went up in price after the proposal was executed. Aave gained almost 2% and is currently trading at $66.40. Meanwhile, MATIS surged by more than 6% and is currently trading at 26.6%.

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