In a decisive move by the Aave community, a proposal for implementing the latest iteration of its protocol, Aave V3, on the Solana blockchain has been approved with an 83% majority. The initiative, championed by the Neon Foundation along with the Aave Chan Initiative (ACI), aims to bolster the protocol’s presence on this high-speed smart contracts platform. The acceptance of the proposal was confirmed by results publicized on January 21, signaling a significant step forward for both Aave and Solana.
The Solana ecosystem has observed a notable ascent, with its indigenous cryptocurrency, SOL, marking its place as one of 2023’s stellar performers. To illustrate the magnitude of its growth, SOL’s value catapulted from an approximate $10 at the year’s inception to a striking $125 by year’s end. SOL’s impressive recovery from its November 2022 slump has been synchronized with a flurry of burgeoning activities on its network, notably in sectors of decentralized finance (DeFi), non-fungible tokens (NFTs), and even meme coin ventures.
Concurrently, Aave has continued its expansion across various Ethereum Virtual Machine (EVM)-compatible networks, establishing itself as a frontrunner in the DeFi space. Aave is currently overseeing more than $6.9 billion in assets, spread over ten chains, with DeFiLlama data as of January 22 pinpointing over 90% of these assets on Ethereum. Specifically, Aave V3 boasts a total value locked (TVL) at $4.9 billion.
The proposition for Aave V3’s deployment on Solana comes at a pivotal moment given Solana’s explosive growth over the previous year. The proposers believe that Solana’s blossoming DeFi TVL and extensive user network will considerably advance Aave’s lending and borrowing services, fortifying its market dominance.
The integration with Solana is predicted to provide Aave access to considerable liquidity and offer users a more streamlined experience of Aave’s offerings. The proponents project that the move will not only solidify Aave’s supremacy as the preeminent on-chain liquidity market but also foster new avenues for partnerships involving Aave, Solana, and other Neon EVM communities.
Utilizing the Neon EVM, a cross-chain bridge, Aave V3 will transition seamlessly onto Solana without necessitating major reconfigurations to the protocol’s fundamental coding structure. Among the array of tokens to be supported initially is SOL, empowering users to borrow against it in the form of USDC, a notable stablecoin.
The community’s approval of this proposal reflects Aave’s strategic aim to transcend the bounds of EVM-compatible networks and embrace a multitude of other blockchain environments. Aave’s protocol has already made its mark across various platforms, including Arbitrum and Base, Avalanche, as well as Polygon, an Ethereum sidechain.