Sonic, previously known as Fantom, has successfully completed the initial phase of launching Aave’s third-generation lending protocol on its blockchain.
A community temperature check conducted on-chain to progress the deployment of Aave v3 on the newly introduced Sonic layer-1 network achieved a quorum on Dec. 27 through a snapshot vote. The purpose of the check was to gauge community backing for the integration of Aave, the leading decentralized finance lending protocol, with Sonic’s blockchain.
Aave Chain, a significant delegate at the AaveDAO, put forth the proposal, which will now move to the Aave Request for Comment stage, enabling feedback from governance members and service providers.
A successful ARFC would pave the way for a final Aave Improvement Proposal or AIP vote to authorize the deployment of Aave v3 on the new layer-1 network.
Sonic has officially passed the @Aave Temp Check ✅
This signifies the initial step towards Aave’s integration with Sonic.
Thank you for the support!
• @AaveChan
• @Token_Logic
• @lemiscate
• @StaniKulechov
• @Matthew_Graham_🔗 https://t.co/qR6v7QAFJ5 pic.twitter.com/i9MI1w2h26
— Sonic Labs (@SonicLabs) December 27, 2024
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Aave dominates the DeFi lending market with $xyz billion in total value locked, according to DefiLlama data. Launching on the L1 would enable Sonic users to access on-chain native credit lines and provide liquidity to other investors.
The rebranding of Sonic from its Fantom era could streamline the deployment process. The team, comprising experienced builders like Andre Cronje, had previously propelled Fantom to a “peak TVL of around $14.5 billion in 2021.”
The new L1 network has been designed to handle 10,000 transactions per second, with fee monetization to attract web3 developers.
While Aave considers expanding its protocol, it is likely to withdraw its lending markets from Polygon. The DeFi lender cited concerns with a Polygon proposal that could expose Aave-native collateral to bad debt.
Polygon co-founder Sandeep Nailwal accused Aave of engaging in anti-competitive tactics and ecosystem bullying. Stani Kulechov, Aave’s founder and CEO, rebutted the allegations, emphasizing that the decision was made to safeguard user security.
My thoughts on the Polygon bridge funds investment proposal:
1. The Polygon team (with the help of their friends) created a proposal to take users’ funds from the Polygon bridge and invest them into DeFi without sufficient risk protection. Behind closed doors, they selected the…
— Stani (@StaniKulechov) December 18, 2024
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