Aave to Launch on Polygon
- In order for users to easily transfer their assets from one network to the other, Aave will soon release a new smart contract bridge.
- Powered by Chainlink, Polygon will allow Aave to maintain the highest standard of safety for its protocol price feeds.
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Decentralized lending platform Aave will be scaling its DeFi platform beyond the Ethereum blockchain by launching its product on scalable sidechains, the firm said in a blog post on 31 March.
According to the announcement, the first sidechain Aave will be exploring under its “New Frontiers” program will be Polygon — a layer 2 proof-of-stake network — which will allow it to escape the high transaction fees currently present on the Ethereum network. While the platform recognizes that high transaction fees are a sign of a successful public blockchain — as they “define actors ready to pay the market price” to use its services — they limit the usage of DeFi. Aave said in its blog post:
“DeFi was always intended to create a sustainable and more inclusive alternative to traditional finance. If DeFi is great but only limited to certain high networth users, DeFi will fall short of its mission to be finance for everyone.”
Aave further said it will soon be releasing a smart contract bridge that will enable its users to easily transfer their assets from one network to the other. Once the Aave Market is launched on Polygon it will support seven different digital assets as collateral, namely MATIC, USDC, USDT, DAI, WETH, AAVE, and WBTC.
Being the third largest DeFi platform on the market — with $5.6 billion in Total Value Locked (TVL) according to DeFi Pulse — Aave will without a doubt be the most significant DeFi platform to become available on Polygon.
The Polygon network not only provides increased throughput and fee reductions, but also maintains one of the highest standards of safety for its protocol price feeds thanks to its partnership with oracle service Chainlink.
- The governance proposal to launch Aave v3 on the Ethereum network passed unanimously, with all participating AAVE token holders voting in favor.
- The third version of Aave will exist alongside v2, and will initially support seven assets, including wBTC, wETH, wstETH, USDC, DAI, LIMK, and AAVE.
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- The temporarily frozen lending markets include YFI, CRV, ZRX,MANA, 1INCH, BAT, ENJ, AMPL, DPI. RENFIL, MKR, xSUSHI, sUSD, USDP, LUSD, GUSD, and RAI.
- In order to improve its risk management, the protocol will no longer allow users to deposit or take loans with them on the platform.
- Binance has officially launched its $1 billion industry recovery fund, and said it is ready to set aside another $1 billion in the near future “if the need arises”.
- Jump Crypto, Polygon Ventures, Aptos Labs, Animoca Brands, GSR, Kronos, and Brooker Group have all joined the fund with a combined contribution of $50 million.