DeFi protocol Aave plans to launch an “Aave Network” chain after completing the V4 upgrade.
Stani Kulechov, the founder of the Lending Protocol, revealed this in a May 27 social media post: proverb:
“This is not an exercise, Aave Network comes after V4.”
Although Kulechov failed to provide additional information about the plan, he said hinted that the chain could be launched “certainly next year or earlier”.
According to DeFillama factsAave is the largest lending protocol in the DeFi sector, with a total asset value of $13.2 billion.
Aave Network
Earlier this month, Aave Labs suggested the Aave network as part of its 2030 strategic roadmap.
The company said 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 home to the Aave DAO and the Aave board, the network could bring unprecedented growth to Aave and GHO by opening up untapped markets.”
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 to monitor the evolution of both Layer 1 and Layer 2 blockchains before finalizing the planned network architecture. However, it confirmed that the Aave network will inherit its security from Ethereum.
Community welcomes news
Members of the Crypto community have warmly welcomed the news of the Aave Network plans.
Jason Ma, Head of DeFi at Axelar Foundation, said:
“All successful apps will launch their own chains over time.”
Meanwhile, 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 give it an edge over other Ethereum-based layer 2 networks such as Optimism, Arbitrum, and the fast-growing Coinbase-backed Base network.
He added that with that market cap, Aave would be the third largest chain, after Ethereum and Tron.
Avara, Aave’s parent company, recently announced that Lens Network will expand Lens Protocol, based on zkSync technology, and Kulechov has made a strong case for the app chain launch workflow.