Sonic passes Aave temp check for v3 integration

Sonic (formerly Fantom) has passed the first phase of launching Aave’s third-generation lending protocol on its own blockchain.

The on-chain temperature check to advance Aave v3 deployment on the newly launched Sonic layer-1 network reached quorum on December 27, according to snapshot voting. The check was intended to assess community support for integrating Aave, the largest decentralized finance lending protocol, into Sonic’s blockchain.

Aave Chain, one of the key delegates of AaveDAO, has submitted the proposal, which will move to the Aave Request for Comment stage, allowing feedback from management members and service providers.

A successful ARFC will unlock a final Aave Improvement Proposal, or AIP vote, to approve the shipping of Aave v3 on the new layer-1 network.

According to DefiLlama data, Aava dominates the DeFi lending market with $xyz billion in total value locked. The launch on L1 will allow Sonic users to leverage the on-chain native credit line and offer liquidity to other investors.

Sonic’s rebranding during the Phantom era could streamline the distribution process. Featuring a roster of experienced builders like Andre Cronje, the team previously took Fantom to “peak TVL of approximately $14.5 billion in 2021.”

The new L1 also built its own blockchain to process 10,000 transactions per second with fee monetization to attract web3 developers.

Aave will likely pull credit markets from Polygon as it looks to expand its protocol. The DeFi lender cited issues with a Polygon proposal that would expose Aave’s native collateral to bad debt.

Polygon co-founder Sandeep Nailwal accused Aave of bullying the ecosystem and using anti-competitive tactics. Stani Kulechov, founder and CEO of Aave, denied the allegations and emphasized that the decision was to protect user safety.

My thoughts on the polygon bridge fund investment proposition:

1. The Polygon team (with the help of their friends) created a proposal to take users’ funds off the Polygon bridge and invest them in DeFi without adequate risk protection. They chose behind closed doors…

— Stani (@StaniKulechov) December 18, 2024