Sonic, formerly Fantom, has passed the first phase of launching Aave’s third-generation lending protocol on its blockchain.
An on-chain temperature check to promote the deployment of Aave v3 on the newly launched Sonic Layer-1 network reached a quorum on December 27, per a snapshot to vote. The audit was intended to assess community support for the integration of Aave, the largest decentralized financial lending protocol, with Sonic’s blockchain.
Aave Chain, a key delegate to the AaveDAO, submitted the proposal, which will proceed to the Aave Request for Comment stage, allowing feedback from board members and service providers.
A successful ARFC would unlock a final Aave Improvement Proposal, or AIP, vote to approve the shipment of Aave v3 on the new layer 1 network.
According to data from DefiLlama, Aava dominates the DeFi lending market with a total value of $xyz billion. Launching on L1, Sonic users would be able to tap into its on-chain credit line and provide liquidity to other investors.
The rebranding of Fantom-era Sonic could smooth out the implementation process. The team, with a roster of experienced builders like Andre Cronje, previously grew Fantom to a “peak TVL of approximately $14.5 billion in 2021.”
The new L1 has also built its blockchain to perform 10,000 transactions per second, with a monetization fee to attract web3 developers.
As Aave considers expanding its protocol, it will likely withdraw its credit markets from Polygon. The DeFi lender cited issues with a Polygon proposal that would expose Aave-native collateral to bad debt.
Polygon co-founder Sandeep Nailwal accused We don’t want to bully the ecosystem and use anti-competitive tactics. Stani Kulechov, the founder and CEO of Aave, refuted the claims and emphasized that the decision was intended to protect user safety.
