The decentralized exchange (DEX) Aave is set to be deployed on the zkSync Era Mainnet, following overwhelming support from the Aave community for a “temperature check” proposal. The voting closed on April 16, with more than 99% of Aave (AAVE) token holders voting in favor of launching the third version of the lending and borrowing protocol on the zero-knowledge Ethereum Virtual Machine (zkEVM).
The launch will be limited to USD Coin (USDC) and Ether (ETH) according to the proposal, which was first pitched on March 26. The next steps for the proposal will be to proceed to another stage for further discussion, followed by risk parameter evaluation and finalization of the proposal. If the next stages are successful, the proposal will be submitted for voting and on-chain governance approval.
The Aave ecosystem will benefit from deploying on zkSync by introducing new users into decentralized finance (DeFi) and cementing Aave as a premier borrowing platform within the zero-knowledge ecosystem. The community previously voted to deploy the Aave V3 codebase on zkSync’s v2 Testnet, which was approved in another off-chain vote.
Uniswap, another decentralized exchange, is also set to launch on the zkEVM solution from scaling solution provider Polygon after a governance proposal was successfully passed. This highlights the growing interest in zero-knowledge technology and the potential benefits of using it to enhance DeFi platforms.
Aave, which was hit by a $60 million short attack that ultimately failed in November 2022, changed its governance procedures in response to the incident. The proposal to deploy Aave on zkSync has received strong support from the Aave community, which is indicative of the growing interest in and adoption of decentralized finance.
Stablecoin adoption has also been identified as a potential catalyst for further DeFi growth, according to Aave founder Stani Kulechov, who believes that “Stablecoins will bridge the gap between mainstream finance and DeFi, more people will join the ecosystem, and more use cases will emerge.”
Overall, the deployment of Aave on zkSync is expected to bring numerous benefits to the ecosystem, including increased adoption, enhanced security, and greater functionality. The proposal’s success is indicative of the growing interest in and adoption of zero-knowledge technology and decentralized finance, highlighting the potential for these technologies to transform the financial industry.
