Lending project Aave is currently contemplating the integration of its version 3 protocol on Base, a Layer 2 blockchain supported by Coinbase. The proposal, introduced by Francis Gowen, a protocol specialist at Flipside Crypto and Aave delegate, is now in the initial “temperature check” phase, allowing Aave community members to provide feedback.
Gowen’s proposal includes suggested risk parameters for assets to be deployed on Base. If the preliminary votes of support reach the required threshold, the proposal will progress to the next stage for further discussion and risk parameter evaluations. A successful outcome would lead to a final on-chain vote, paving the way for deployment.
The integration of Aave with Base is anticipated to generate significant revenue streams for Aave and grant access to a potentially large user base. This expectation is reinforced by the robust developer activity witnessed during Base’s initial phase, with 18,000 developers deploying 55,000 smart contracts on the testnet. Such promising growth potential signals a positive outlook for the mainnet upon its launch.
Aave v3 represents the third major iteration of the Aave protocol, which enables decentralized and non-custodial lending, borrowing, and interest accrual on a wide range of crypto assets, including stablecoins and other tokens.
If the proposal is given the green light, it would provide significant advantages to the Base network, which is presently in its testnet phase. Supported by Coinbase, Base operates as a rollup network utilizing the OP Stack, enabling off-chain computations on a secondary layer. This architecture allows for expedited and cost-efficient transactions while preserving the security benefits associated with the Ethereum mainnet. Coinbase’s vision for Base is to establish it as a dedicated platform for hosting its on-chain products.
The potential integration of Aave’s version 3 protocol into Base signifies a significant development in expanding the capabilities and reach of both projects, further bolstering the growth and adoption of decentralized finance (DeFi) within the cryptocurrency ecosystem.
