Aave Passes Proposal To Launch Its V3 On Metis

Key Points:

• After an overwhelming affirmative community vote, Aave will launch its V3 on the Ethereum layer two ecosystem Metis Network.
• It received unanimous approval from all voters.
• Metis is offering users liquidity incentives to increase network traction after the V3 rollout.

The Aave community, the top DeFi lending protocol with $8.2 billion in total value locked (TVL), has authorized a request to deploy the protocol’s v3 iteration on Metis Andromeda, an Ethereum Layer 2 network.

A community vote on Aave’s governance forum found that 100% of all voters supported the move. No one voted against the change.

The opinion surveys Aave’s dedication to Ethereum’s developing Layer 2 ecosystem. V3, Aave’s most recent edition, is now available on seven chains, including top L2s Arbitrum and Optimism, as well as the Polygon sidechain.

Metis gained popularity during the last bull cycle because of its capacity to let users transact on Ethereum for minimal costs and speedier transactions. It has subsequently lost momentum to networks like Optimism and Arbitrum, which now store billions of dollars in tokens and have thriving ecosystems. According to L2beat, Metis Andromeda is the fifth-largest Layer 2 network, with a TVL of $121 million.

The implementation of Aave on Metis is intended to boost market liquidity for both while also enabling Metis users to benefit from Aave’s borrowing and lending capabilities, such as receiving incentives for supplying token liquidity to the platform.

Metis has issued 100,000 of its native METIS tokens as liquidity mining incentives to Aave network users over a six-month period.

Aave users might potentially benefit from Metis’ Builder Mining Reward program, which gives 4,000 METIS to participating protocols each month according to the proportion of transactions they represent. For example, if the protocol accounts for 10% of the network’s monthly transaction count, Aave users would earn 400 METIS per month.

The MetisDAO Foundation revealed intentions for the network to become a hybrid rollup on March 3.

Optimistic rollups function by aggregating Layer 2 transactions and sending them to the Ethereum mainnet for finalization, which means that most transactions are substantially quicker and cheaper than on the mainnet. Mainnet withdrawals, on the other hand, need a seven-day wait to allow for fraud identification.

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