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 poised to bring liquidity and yield generation capabilities to the Elastic (NYSE:ESTC) Chain ecosystem. Users of Aave will gain access to advanced zero-knowledge (ZK) technology that provides low-cost transactions while deriving security from Ethereum using cryptographic validity proofs. As part of the integration, Chainlink will provide secure and reliable price feeds.
DeFi Gateway for Institutional Finance
The Aave deployment will also set the stage for privacy-focused DeFi applications. These applications will leverage Aave’s competitive liquidity, flexibility and conservative risk management to meet the increasing demand for enhanced privacy in DeFi. Additionally, this deployment is expected to unlock new institutional use cases, ranging from private networks to networks tailored for specific asset classes, risk profiles, and user segments. This integration also unlocks new opportunities for the Aave-native overcollateralized stablecoin GHO and future products, such as fast, cost-efficient payments.
After positive technical evaluation done by BGD Labs and positive risk analysis by Chaos Labs and asset/parameters recommendations by the risk service providers, BGD had deployed the integration and the Aave DAO has 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 via liquidity mining towards Aave users. The distribution will include GHO secondary liquidity incentives, safety module deployments, and merit programs. Aave Chan Initiative (ACI), one of Aave DAO’s service providers, will coordinate any liquidity mining campaign on the ZKsync Aave V3 deployment, on behalf of the Aave DAO.
The deployment governance proposals can be found here and here.
ContactM Group Strategic Communicationsppadovano@mgroupsc.com
This article was originally published on Chainwire
Source: Cryptocurrency - investing.com
