Sonic, previously known as Fantom, has successfully cleared the initial hurdle in launching Aave’s third-generation lending protocol on its blockchain. This milestone was achieved after an on-chain temperature check on the newly launched Sonic layer-1 network garnered significant community support in a snapshot vote on December 27.
The proposal to integrate Aave with Sonic’s blockchain was put forth by Aave Chain, a prominent delegate at the AaveDAO. The next step involves the Aave Request for Comment stage, where feedback will be solicited from governance members and service providers. If this stage is successful, it will pave the way for a final Aave Improvement Proposal (AIP) vote to approve the deployment of Aave v3 on the new layer-1 network.
Aave, the leading decentralized finance lending protocol, currently dominates the DeFi lending market with billions of dollars in total value locked. By launching on the L1 network, Sonic users will have access to on-chain native credit lines and the opportunity to provide liquidity to other investors.
The rebranding of Sonic from its Fantom era is expected to streamline the deployment process. The team behind Sonic includes experienced builders like Andre Cronje, who previously played a key role in growing Fantom to a peak total value locked of approximately $14.5 billion in 2021. Additionally, Sonic’s blockchain has been designed to support 10,000 transactions per second, with a fee monetization model aimed at attracting web3 developers.
In light of its potential integration with Sonic, Aave is considering withdrawing its lending markets from Polygon. This decision comes after concerns were raised about a Polygon proposal that could expose Aave-native collateral to bad debt. Polygon co-founder Sandeep Nailwal accused Aave of employing anti-competitive tactics, while Aave’s founder and CEO, Stani Kulechov, defended the move as a measure to safeguard user security.
As the collaboration between Aave and Sonic progresses, the DeFi community eagerly anticipates the impact of this partnership on the broader ecosystem. Stay tuned for more updates on the Aave-Sonic integration and the developments in the DeFi space.