Aave Network is Coming Soon

Aave, the most prominent lending protocol in the DeFi sector, plans to launch its blockchain, 'Aave Network,' after completing its V4 upgrade.

Stani Kulechov, the lending protocol's founder, revealed this exciting development in a May 27 social media post, stating, ' This is not a drill; Aave Network is planned to come after V4.'

While Kulechov did not provide additional details, he hinted that the chain could be launched by 'next year for sure or earlier.'

Aave's Market Dominance

According to DeFillama data, Aave is currently the most extensive lending protocol in the DeFi sector, with the total value of assets locked at a staggering $13.2 billion.

This announces that Aave Network is a significant development in the DeFi space. Earlier this month, Aave Labs proposed the Aave Network as part of its strategic 2030 roadmap.

The firm stated that the network would serve as the primary hub for Aave and GHO while maintaining a multichain and network-agnostic approach.

It added, 'While Ethereum would remain the home of the Aave DAO and the Aave governance, the network can bring unprecedented growth to Aave and GHO by opening up unexplored markets.'

Technical Details

The proposal outlined plans to use the GHO stablecoin for gas fees, while the AAVE token would be the main staking asset for decentralized validators and sequencers.

Meanwhile, Aave Labs emphasized that it would continue monitoring the evolution of both Layer 1 and Layer 2 blockchains before finalizing its planned network architecture. However, it confirmed that the Aave Network will inherit its security from Ethereum.

Community Reception

The crypto community has strongly welcomed news of the Aave Network plans. Jason Ma, the head of DeFi at Axelar Foundation, commented, 'All successful apps will launch their chains over time.'

Marc Zeller, the founder of the Aave Chan Initiative, claimed that Aave would be the largest Ethereum Layer with a market size of $20.5 billion.

This would place it ahead of other Ethereum-based layer-2 networks like Optimism, Arbitrum, and the fast-rising Coinbase-backed Base network.

Future Prospects

Avara, the parent of Aave, recently announced that Lens Network will expand Lens Protocol, which is built on zkSync technology. Kulechov has advocated strongly for the workflow for launching appchains.

Aave is ready to make significant strides in the DeFi space and could become the third-largest chain after Ethereum and Tron.