🌎 Aave to Deploy on Linea zk-Rollup Network

Aave to Launch on Linea Following Community Vote

Aave has gained approval from its community to deploy its protocol on Linea, a zk-rollup network built on Ethereum. The decision was made after a proposal, #5ae27, received overwhelming support from the Aave community, with over 636,000 AAVE tokens cast in favor.

Why Linea?

Linea is a layer-2 network that aims to address common issues with Ethereum, such as slow speeds and high fees. Developed by Consensys, Linea is integrated with other Consensys-owned products, including the popular non-custodial crypto wallet MetaMask and blockchain infrastructure provider Infura.

The integration with MetaMask, which has over 30 million active users, could provide Aave with a significant opportunity to tap into a larger user base. However, the success of this expansion is uncertain. Currently, the Linea network holds nearly $450 million in total value locked.

What it means for Aave

By expanding to Linea, Aave hopes to offer better scalability, faster transactions, and lower costs for its users. The protocol also plans to integrate its GHO stablecoin with MetaMask’s debit card, which only works on Linea.

Aave is already one of the largest defi protocols, managing over $21 billion in TVL across 12 blockchains. Linea’s zk-rollup technology could potentially make Aave’s services more efficient and cost-effective. The protocol also plans to allocate ecosystem incentives, such as stablecoin incentives, to encourage adoption on Linea.

The Shadow of ZeroLend

Aave’s expansion to Linea comes months after its competitor ZeroLend attempted a similar move. ZeroLend, a fork of Aave, faced criticism and controversy earlier this year. Despite this, ZeroLend managed to capture over $250 million in TVL on Linea, accounting for over one-third of the network’s total TVL.

Governance and Next Steps

The proposal to deploy Aave V3 on Linea received significant backing from the Aave Chan Initiative, which guides governance discussions within the Aave community. However, it remains to be seen how the wider Aave community will respond to the expansion.

The next steps involve working with development teams to implement the deployment on Linea. Risk parameters for wrapped tokens assets have already been established to ensure the protocol’s security and performance on the new network.

AAVE’s price showed minimal reaction to the news, trading at $282.74, reflecting a slight 0.05% decrease in the past 24 hours.