The governance proposal, authored by ACI, aims to integrate Aave V3 with Spiderchain, an Ethereum Virtual Machine (EVM)-compatible layer two (L2) network on Bitcoin developed by Botanix Labs. The L2 solution seeks to combine Bitcoin’s security with Ethereum’s programmability, offering a decentralized platform for applications such as lending, borrowing, and trading.
Spiderchain stands out for its use of decentralized multi-signature wallets, a proof-of-stake (PoS) consensus model, and low transaction costs averaging $0.01. Botanix Labs claims it has secured substantial community engagement, with over 60,000 active participants and significant liquidity commitments for its upcoming mainnet launch. Notably, the team behind the project believes Spiderchain provides a decentralized synthetic representation of bitcoin, designed to minimize counterparty risk in wrapped bitcoin derivatives.
If approved, the proposal notes that the deployment could enhance Aave’s liquidity options and attract a new user base of bitcoin holders interested in earning yield through defi. The proposal outlines several benefits of the integration, including early mover advantage within Bitcoin’s emerging decentralized finance (defi) sector and the potential to diversify Aave’s bitcoin-based assets.
The proposal also details that Botanix Labs has also committed to integrating Aave’s native stablecoin, GHO, into the Spiderchain ecosystem. By allowing users to borrow against BTC collateral with GHO, Aave DAO could capture additional revenue from interest payments. The proposal details a phased approach, beginning with community feedback in the current “temp check” phase. Subsequent steps include publishing a more detailed technical proposal and, if successful, deploying Aave V3 on Spiderchain’s mainnet.
Security and compatibility are key considerations, with Botanix Labs pledging to collaborate with Aave’s development and risk management teams. Initial liquidity commitments, estimated at $20 million in bitcoin, aim to ensure smooth operations at launch. The community’s response to this proposal will determine whether it progresses to a formal vote. Proponents argue the move could position Aave as a leader in Bitcoin-aligned defi, leveraging Spiderchain’s performance and innovative features.
