AAVE V3 deployment on Ethereum layer 2 METIS network and its untold story

• The community considered the move an opportunity to access more liquidity.
• Deposits on Aave V3 reached a yearly high in spite of declining enthusiasm.

Every single vote from all 650,764 Aave [AAVE] participating contributors went in favor of the proposal to deploy its V3 on the Ethereum [ETH] Metis network.

This support by the DAO signaled a significant milestone by Aave, which has been on the lookout for integration with the Ethereum layer two (L2) protocol.

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The decision to deploy Aave V3 on the Metis network demonstrates the DAO’s commitment to allow the listing of some assets. This includes WETH, USDC, METIS, DAI, and USDT.

Therefore, this would enable users to access more liquidity and ease borrowing and lending on the protocol.

The Metis network is an L2 solution built on Ethereum. It was designed to alleviate congestion on the main Ethereum network and thrived during the last bull market. The network had lost the attention of investors accustomed to the more recent Arbitrum [ARB], and Optimism [OP].

Nevertheless, it seemed that Aave was unfazed. And according to the project, it could leverage the capabilities of the Metis network. As this could improve the speed and cost-effectiveness of transactions for its users.

Dampened in euphoria

While the voting outcome inferred that the Aave community was excited about exploring new growth avenues, it did not reflect on the social volume. 

According to Santiment, the social volume of the protocol remained in a swedge, as it had since the second week of April. When this metric is at a low state, it means that the search terms accustomed to the ecosystem were not impressive.

Source: Santiment

The flatlined condition did not stop with the social volume rather, it extended to the weighted sentiment, which was -0.429 at press time. This metric considers the messages related to a token on social media platforms, and its value depicts the average.

Since the weighted sentiment lingered in the negative region, as shown above, it suggests that the overall acumen did not align with optimism.

V3 deposits increase amid improved polishing

As per development activity, the on-chain analytic platform showed that Aave was excelling. The metric spikes when there is a notable upgrade on a network. 

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Interestingly, the Aave DAO seemed to have turned support into action. This was because the deposits on the Aave V3 reached their highest point since the year began. 

At the time of writing, deposits were as high as 25,600. This confirms increased interest in capitalizing on the V3.

Source: Santiment