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Aave starts governance discussion to deploy on upcoming Polygon zkEVM mainnet

Quick Take

  • Aave is considering deploying a minimum viable version (MVP) of Aave v3 on Polygon’s upcoming zkEVM Layer 2 network.
  • The protocol said it aimed to establish a strategic presence on the Layer 2 network early on, soon after it mainnet beta goes live on March 27.

Aave, a decentralized lending protocol, is considering deploying a minimum viable version (MVP) of Aave version 3 on Polygon's upcoming zkEVM Layer 2 network.

Marc Zeller, the founder of Aave-Chan Initiative and an Aave protocol delegate, submitted this proposal to establish Aave's presence on Polygon's zkEVM network soon after its mainnet beta launch on March 27. The proposal is currently in the "temperature-check" phase.

To reduce risk, the proposal suggests limiting the onboarding of assets and setting conservative risk parameters. It recommends onboarding only three collateral types: wrapped ETH (WETH) and wrapped MATIC (WMATIC) tokens, as well as USDC stablecoin. It also recommends including only one borrowable asset, the USDC stablecoin.

The proposal says it also aims to lay the groundwork for possibly issuing Aave's GHO stablecoin on the zkEVM, if the governance were to consider this option in the future.

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Polygon's zkEVM will be a zero-knowledge or ZK-rollup that performs off-chain computations on a secondary layer for faster and cheaper transactions while prioritizing security. The aim is to further expand the Ethereum network's scaling capabilities.

Polygon says its zkEVM will be equivalent to Ethereum's Virtual Machine, which means that the network is expected to support the same code as Ethereum. This will allow developers to onboard apps from Ethereum and use them on the zkEVM network without making significant changes.

Aave has a track record of working closely with core teams to implement its lending protocol, particularly in 2021 on the Polygon and Avalanche blockchains. Aave's expansion onto the Polygon sidechain network (distinct from zkEVM) in 2021 was a significant driver of increased activity on the network.


© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Vishal Chawla is The Block’s crypto ecosystems editor and has spent over six years covering tech protocols, cybersecurity, artificial intelligence and cloud computing. Vishal likes to delve deep into blockchain intricacies to ensure readers are well-informed about the continuously evolving crypto landscape. He is also a staunch advocate for rigorous security practices in the space. Before joining The Block, Vishal held positions at IDG ComputerWorld, CIO, and Crypto Briefing. He can be reached on Twitter at @vishal4c and via email at [email protected]

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