A proposal has been made on the governance forum of the Aave decentralised finance protocol (DeFi) to determine whether or not its V3 would be deployed on Polygon’s zkEVM solution (MATIC). In addition, the proposal aims to pave the way for the possible arrival of Aave’s GHO stablecoin on Layer 2, which is scheduled to arrive on 27 March.
Aave V3 could be launched on Polygon zkEVM
A proposal to deploy Aave V3 on the Polygon (MATIC) sidechain zkEVM mainnet has been made on the Aave governance forum. Presented by Marc Zeller, founder of the Aave-Chan Initiative, this provision would allow the decentralised finance protocol (DeFi) to establish a strategic presence on this new layer 2.
According to the governance forum article, Aave V3 has already been present on the zkEVM testnet for more than 6 months “for testing purposes”, so its integration on the mainnet is greatly simplified, especially since, as its name indicates, the zkEVM technology is compatible with the Ethereum Virtual Machine (EVM). In other words, the code used by Aave for its usual activities remains the same as for Polygon’s layer 2 zkEVM.
Thus, its integration would require only a small number of changes.
The @0xPolygon ZkEVM network will be live on March 27th. As a supporter of L2 diversity, The ACI published a proposal to deploy @AaveAave V3 there, as close as possible to “day one” of this network.
Feel free to participate in the governance discussionshttps://t.co/ep23D2Rl0R pic.twitter.com/Qbatux087H
– Marc Zeller (@lemiscate) March 3, 2023
If Aave V3 were to be deployed on Polygon zkEVM, a limited number of crypto-currencies would be incorporated at first due to the innovative aspect of layer 2. Thus, only USDC, WETH and WMATIC would be available as collateral. Regarding borrowings, one of the key tools of Aave, these would be available exclusively in USDC in order to mitigate hypothetical risks.
In addition, it should be noted that Aave’s stablecoin GHO – currently available on the Goerli testnet – could be rolled out later on Polygon zkEVM, according to the proposal.
With a launch date of March 27, Polygon’s layer 2 zkEVM is pioneering the democratisation of Ethereum Virtual Machine-enabled ZK-Rollups. To learn more about ZK-Rollups and what makes them unique, we invite you to read our dedicated fact sheet.
Aave is currently the 4th largest DeFi protocol in terms of total locked value (TVL), with more than $4.58 billion hosted within its ecosystem
