DeFi lending protocol Aave’s community introduced a new ARFC proposal aimed at securing votes for deploying Aave V3 on the ZKsync Era.
This proposal seeks to enhance scalability and efficiency by leveraging ZKsync’s layer 2 solution, potentially improving transaction speeds and reducing costs for Aave users.
Aave Proposes Aave V3 Deployment on ZKsync
Aave’s decentralized finance (DeFi) lending protocol community has put forth a new ARFC proposal to secure votes for deploying Aave V3 on the ZKsync Era. ZKsync utilizes zero-knowledge rollups to process multiple transactions off-chain and validate them with a single proof on the Ethereum blockchain. This approach significantly increases transaction throughput and reduces gas fees, benefiting deposit and borrowing operations with improved efficiency and cost savings.
The deployment of Aave V3 on ZKsync Era promises enhanced scalability and interoperability, opening new opportunities for Aave DAO stablecoin GHO. Currently, the proposal is in the voting phase, which concludes on June 21st, and has garnered unanimous support with 100% of votes in favor. Upon successful voting, the proposal will advance to the Snapshot phase and subsequently coordinate with BGDLabs and Catapulta for deployment.
Aave V3 introduces advanced capital efficiencies, robust security measures, and cross-chain capabilities to fortify decentralization across the protocol. Key features include an isolation mode for listing new assets with specific debt ceilings and an E-mode optimizing capital efficiency during price-correlated collateral and borrowing scenarios.
Source: X
Aave: Non-Custodial Liquidity Market Protocol
Aave functions as a non-custodial liquidity market protocol, offering users the flexibility to participate either as liquidity suppliers or borrowers. Suppliers contribute assets to earn passive income, while borrowers can access funds using perpetual or one-block liquidity methods.
Recently, Aave introduced its protocol’s subgraph on The Graph. This integration enables Aave developers and users of its subgraph to utilize a decentralized network supported by multiple indexers. This initiative aims to strengthen support for decentralized applications (dApps) built on the Aave ecosystem.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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