Aave considers proposal to expand into Coinbase-backed Base network

Quick Take

  • Aave is considering a proposal to deploy its V3 on the emerging Base network, a Layer 2 blockchain solution backed by Coinbase.
  • Flipside Crypto presented the proposal, which remains in a “temperature check” phase for initial community feedback.

Lending project Aave's governing forum is mulling the proposed implementation of its version 3 on Base, the Layer 2 blockchain supported by Coinbase.

The proposal was brought forward on Wednesday by Francis Gowen, a protocol specialist at the analytics firm Flipside Crypto who also serves as a delegate and contributor to Aave. It's currently undergoing an initial “temperature check” stage, when Aave community members can provide feedback.

In the proposal, Gowen outlined suggested risk parameters for assets slated for deployment on Base. If the current phase secures enough preliminary votes of support, the proposal will transition to the next stage for further discussion and risk parameter evaluations. If successful, the proposal will advance to a final on-chain vote, paving the way for deployment.

Gowen's proposal also suggested that integrating Aave with Base could create significant revenue streams for the project and provide it access to a potentially large user base, an expectation underscored by robust developer activity observed during Base’s initial phase. 

Aave lets users lend, borrow and accrue interest


Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

Aave v3 is the third major iteration of the Aave protocol, a decentralized and non-custodial liquidity market protocol that enables users to lend, borrow and accrue interest on various crypto assets, encompassing stablecoins and other tokens. 

If greenlit, the proposal would be beneficial for the Base network, which is currently in its testnet phase. The project initially rolled out in February, with plans for a mainnet launch later in the year. The Aave proposal comes a week after Uniswap, the largest decentralized exchange, started deliberations regarding an expansion to Base.

Built on the OP Stack, the Base network is backed by Coinbase and functions as a rollup network, executing off-chain computations on a secondary layer for faster, cheaper transactions, while maintaining the security benefits of the Ethereum mainnet. It’s designed to be a cost-effective Layer 2, serving as a home for Coinbase’s on-chain products.

© 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]


To contact the editor of this story:
Nathan Crooks at
[email protected]