Sonic, formerly Fantom, has passed the first stage of launching Aave’s third-generation lending protocol on its blockchain.
An on-chain temperature check to advance Aave v3 deployment on the newly launched Sonic layer-1 network reached a quorum on Dec. 27, per a snapshot vote. The check sought to assess community support for integrating Aave, the largest decentralized finance lending protocol, with Sonic’s blockchain.
Aave Chain, a major delegate at the AaveDAO, submitted the proposal, which will proceed to the Aave Request for Comment stage, allowing feedback from governance members and service providers.
A successful ARFC would unlock a final Aave Improvement Proposal or AIP vote to approve shipping Aave v3 on the new layer-1 network.
Sonic has officially passed the @Aave Temp Check ✅This marks the first step toward Aave's integration with Sonic.Thank you for the support!• @AaveChan• @Token_Logic• @lemiscate• @StaniKulechov• @Matthew_Graham_🔗 https://t.co/qR6v7QAFJ5 pic.twitter.com/i9MI1w2h26
— Sonic Labs (@SonicLabs) December 27, 2024
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Aava dominates the DeFi lending market with $xyz billion in total value locked, according to DefiLlama data. Launching on the L1 would allow Sonic users tap on-chain native credit line and offer liquidity to other investors.
Sonic’s rebrand from its Fantom era might smoothen the deployment process. The team, featuring a roster of veteran builders like Andre Cronje, previously grew Fantom to a “peak TVL of circa $14.5 billion in 2021.”
The new L1 also built its blockchain to execute 10,000 transactions per second, with a fee monetization to attract web3 developers.
While Aave mulled extending its protocol, it will likely pull its lending markets from Polygon. The DeFi lender cited issues with a Polygon proposal that would expose Aave-native collateral to bad debt.
Polygon co-founder Sandeep Nailwal accused Aave of bullying the ecosystem and using anti-competitive tactics. Stani Kulechov, Aave’s founder and CEO, refuted the claims and stressed the decision was to protect user security.
My thoughts on the Polygon bridge funds investment proposal:1. The Polygon team (with the help of their friends) created a proposal to take users' funds from the Polygon bridge and invest them into DeFi without sufficient risk protection. Behind closed doors, they selected the…
— Stani (@StaniKulechov) December 18, 2024
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