Aave V3 launches on Ethereum layer-2 network Metis
- Aave V3’s launch on Metis follows a community vote that went live earlier this month.
- According to the Metis team, there are various ways in which the Aave V3 integration will benefit ecosystem users.
- The DeFi protocol’s V3 is also live on Avalanche, Polygon, Optimism and Arbitrum.
Aave, a decentralized liquidity protocol, has deployed on the Ethereum layer-2 scaling platform Metis, offering a range of decentralized finance (DeFi) features and products to its ecosystem.
The launch on the Metis Layer-2 comes after a community proposal for the zero-knowledge (zk) proof EVM, which enables Aave governance to activate the Aave V3 Metis pool by completing the initial setup and listing WETH, USDC, USDT, DAI, and METIS.
“The integration of Aave Protocol V3 brings enhanced capital efficiency with valuable new security and risk mitigation features,” Metis co-founder Kevin Liu said.
Capital efficiency for users
V3 integration offers numerous benefits to ecosystem users, with network speed and security enhanced. Users will also take advantage of features such as lending and borrowing of assets with less collateral.
This deployment will enable efficient capital markets in Metis, a key component for building and sustaining a Web3 Economy.
Users and builders will be able to enjoy DeFi composability, fostering a more diverse, complete and collaborative ecosystem💚
— Metis 🌿 (@MetisDAO) May 8, 2023
The launch of Aave V3 on Metis also means DeFi users can now generate yield easily via various supported assets even as they tap into enhanced risk management tools and reduced transaction fees through gas optimization. Overall, the integration brings more capital efficiency for Metis users and developers, the latter also accessing key tools for innovating decentralised applications.
Aave is a widely used DeFi protocol, boasting over $5.24 billion in total value locked (TVL), according to data from DeFiLlama.
The protocol’s V3 version deployed on the Ethereum mainnet in January 2023 after successful launches on various Ethereum layer-2 protocols, including Polygon, Avalanche, Arbitrum, and Optimism.