DeFi lending platform Aave launched on the Ethereum layer 2 scaling solution ZKsync Era’s mainnet. The partnership between the two entities aims to expand yield-generating opportunities for ZKsync’s users. The Aave DAO approved USDT, USDC, WETH, and wstETH as the first assets to be supported on ZKsync’s mainnet.
Aave, the largest DeFi lending protocol by total value locked, announced its Aave V3 launched on the Era mainnet. Both entities are collaborating to open liquidity and expand yield-generating opportunities on the ZKsync era mainnet. The announcement also said users will be able to leverage advanced ZK-proof technology.
Aave V3 makes its debut on Ethereum’s L2 ZKsync Era
Aave V3 is debuting on Era Mainnet, powered by @zksync, unlocking unprecedented scalability, privacy, and security while expanding the DeFi user base and new institutional use cases. pic.twitter.com/blNlUjsalX
— Aave Labs (@aave) August 21, 2024
The lending DeFi protocol announced that integrating Aave V3 on Era mainnet will unlock scalability, improve privacy, and enhance security. According to Aave’s announcement, the two entities sought other industry players to facilitate integration.
Aave announced that BGD Labs deployed the integration on behalf of Aave DAO after completing what it called comprehensive technical evaluations. Chaos Labs conducted the risk analysis. It also volunteered that the decentralized blockchain oracle network Chainlink will provide price feeds.
Aave’s announcement also detailed that the Aave-Chan Initiative (ACI) will organize Aave’s overcollateralized stablecoin GHO incentives on behalf of Aave DAO by redistributing airdrops acquired from the ZKsync ecosystem through liquidity incentives, merit programs, and safety module deployments.
The collaboration will give Aave users access to zero-knowledge (ZK) technology, which allows users to access cheaper transactions on the Ethereum network through cryptographic validity proofs.
Aave sets sights on institutional decentralized finance
Aave also mentioned that the updated ZKsync Era mainnet will expand its use case to institutional clients and large market players. The Elastic Chain network, which includes ZKSync-based rollups, will be utilized to create custom platforms and private networks focused on specific institutional needs.
Aave Labs Founder and CEO Stani Kulechov highlighted that the agreement between the two DeFi protocols is set to promote accessibility, collaboration, and innovation for both ZKsync and Aave communities. He also mentioned that Aave will unlock institution-friendly features.
“By combining ZK-proofs and the unified Elastic Chain ecosystem, Aave can unlock unprecedented scalability, privacy, and security, expanding the DeFi user base and new institutional use cases.”
– Stani Kulechov, Aave Labs Founder and CEO
According to Aave’s blog dated August 21st, the Aave deployment will pave the way for decentralized finance (DeFi) applications that zero in on privacy. The applications will utilize Aave’s cautious risk management strategies, adaptability, competitive liquidity, and flexibility to fulfill the growing need for improved privacy in the DeFi space.
The implementation is expected to open up new institutional use cases and attract major players. These use cases include user engagement, private networks, asset class-specific networks for user categories, and risk profiles, among others.
The Aave decentralized autonomous organization (DAO) voted in favor of a proposal that approved USDT, USDC, wstETH and WETH as the first assets on Era’s mainnet.
Source: https://www.cryptopolitan.com/aave-v3-launches-on-zksync-era/