AAVE to deploy Aave V3 on Avalanche C-Chain

According to Aave (AAVE/USD), deployment of V3 on Avalanche (AVAX/USD) will be mutually beneficial, allowing the protocol to tap into the Avalanche DeFi ecosystem and fulfill its multi-chain vision, AAVE posted on its website.

Deployment strategy

Through Avalanche Rush, the Avalanche Foundation will continue to incentivize Aave V3. In addition, it will place emphasis on a safe migration from Aave V2 to V3.

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According to insiders, Avalanche hosting V3 after the success of every metric of V2 deployment there is a natural upgrade from the status quo. Experts recommend upgrading V2 contracts to V3 contracts instead of simply deploying V3 on Avalanche for technical reasons.

Deploying V3 is the easy path

This deployment would make current V2 users withdraw their collateral, then deposit in new contracts and reopen positions. V2 users will become V3 users without needing to take any action. What’s more, this will happen quickly with the upgrade.

Aftermath of Aave protocol on C-Chain

The Aave protocol was successfully deployed on the Avalanche C-Chain on October 4, 2021 thanks to strong support from the Aave community. The protocol and Rush launched at the same time. As part of Rush, the Avalanche Foundation allocated AVAX rewards to Aave users, rewarding existing ones and onboarding new ones to the Aave ecosystem.

AVAX is AAVE’s biggest market after Ethereum

These initiatives led to increased growth of both ecosystems. Moreover, Avalanche quickly became Aave’s largest market after Ethereum (ETH/USD).

C-Chain evolution highlights

According to Aave, Avalanche C-Chain has evolved a great deal since their last proposal. It reached almost 800,000 monthly active users last December and currently boasts more than 1.5 million unique addresses.

TVL is $10B+, $5B+ bridged from Ethereum

Avalanche has become the fourth biggest blockchain by TVL. Its total TVL is more than $10 billion and more than $5 billion has been bridged from Ethereum.

Decentralisation

The Avalanche network has more than 1,200 validators, but is highly secure. C-Chain regularly achieves more than 500,000 daily transactions, sometimes in excess of a million a day. This is up to as much as four-fifths of the daily transaction volume on Ethereum.