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 recently launched Sonic Layer-1 network reached a quorum on December 27, according to a snapshot. 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.
Sonic has officially passed the @Aave Temp Check
This marks the first step toward integrating Aave with Sonic.
Thanks for the support!
• @AaveChan
• @Token_Logic
• @lemiscaat
• @StaniKulechov
• @Matthew_Graham_
https://t.co/qR6v7QAFJ5 pic.twitter.com/i9MI1w2h26
— Sonic Labs (@SonicLabs) December 27, 2024
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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 Aave of bullying the ecosystem and using 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.
My thoughts on the Polygon Bridge Funds investment proposal:
1. The Polygon team (with the help of their friends) has come up with a proposal to take users’ money off the Polygon Bridge and invest in DeFi without sufficient risk protection. Behind closed doors they selected the…
— Stani (@StaniKulechov) December 18, 2024
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