London, UK, August 21, 2024, Chainwire
Expansion enables greater access to liquidity and new institutional use cases
Aave, the leading DeFi protocol governed by the Aave DAO, today announced the launch of Aave V3 on Era Mainnet powered by ZKsync. With efficient and secure transactions provided by ZKsync technology, the launch of Aave V3 on Era is ready to bring liquidity and yield generation capabilities to the Era mainnet. Elastic (NYSE:) Chainlink ecosystem. Aave users will gain access to advanced zero-knowledge (ZK) technology that provides low-fee transactions while also gaining security through the use of cryptographic proofs of validity. As part of the integration, Chainlink will provide secure and reliable price feeds.
“This integration marks a pivotal moment for the Aave and ZKsync communities, providing opportunities for greater access, collaboration, and innovation,” he said. Stani Kulechov, Founder and CEO of Aave Labs. “By combining ZK proofs and the unified Elastic Chain ecosystem, Aave can unlock unprecedented scalability, privacy, and security, expanding the DeFi user base and new institutional use cases.”
Alex Gluchowski, co-inventor of ZKsync, commented: “Aave has established itself as one of the leading DeFi protocols and has played a pivotal role in the growth and adoption of cryptocurrencies since its launch. As ZKsync’s Elastic Chain continues to gain momentum, it is important that it becomes a place where both retail and institutional users can take advantage of a secure access point to the digital asset ecosystem across all ZK Chains. ZKsync is the most advanced and future-proof scaling solution powered by ZK-proof technology, and with Aave’s implementation on Era, a wider audience will be able to take full advantage of ZKsync.”
“I have been working with the Aave team since 2019 and with ZKSync since early 2022,” saying Johann Eid, Chief Commercial Officer at Chainlink Labs“In a short time, both projects have had a profound impact on DeFi and the blockchain industry as a whole, helping to drive interest, secure transactions, and bring a tremendous amount of value and innovation to this space. The deployment of Aave V3 on Era Mainnet brings together a foundational DeFi protocol and a pioneer that is driving the zero-knowledge space, which is a huge step forward for our industry, and Chainlink Price Feeds is playing a key role in ensuring that the market data powering the protocol is ultra-reliable and accessible. This launch is a major milestone in terms of DeFi scalability, and its potential to increase institutional usage is an exciting development for on-chain finance at large.”
ZKsync, a layer-2 scaling solution leveraging ZK technology, offers faster, low-cost transactions in a secure, decentralized environment. The addition of Aave will attract a broader user base, improve user experience, and establish Aave as a leading DeFi protocol within the rapidly growing Elastic Chain ecosystem.
DeFi gateway for institutional finance
The implementation of Aave will also lay the groundwork for privacy-focused DeFi applications. These applications will leverage Aave’s competitive liquidity, flexibility, and conservative risk management to meet the growing demand for greater privacy in DeFi. Furthermore, this implementation is expected to open up new institutional use cases, ranging from private networks to networks tailored to specific asset classes, risk profiles, and user segments. This integration also opens up new opportunities for Aave’s native overcollateralized stablecoin GHO and future products such as fast and cost-effective payments.
Following a positive technical assessment by BGD Labs, a positive risk analysis by Chaos Labs and asset/parameter recommendations by risk service providers, BGD implemented the integration and Aave DAO approved USDC, USDT, WETH, and wstETH as the initial assets available on Era. The initial risk parameters for each asset can be found here.
The Aave DAO is committed to redistributing any airdrops received from the ZKsync ecosystem through liquidity mining among Aave users. The distribution will include GHO secondary liquidity incentives, security module implementations, and merit programs. The Aave Chan Initiative (ACI), one of the Aave DAO’s service providers, will coordinate any liquidity mining campaigns on the ZKsync Aave V3 implementation, on behalf of the Aave DAO.
Proposals for deployment governance can be found here and here.
ContactM Group Strategic Communications[email protected]
This article was originally published on Chainwire
