Home CryptocurrencyAltcoin Aave V3 will launch on the Ethereum layer-2 Metis network

Aave V3 will launch on the Ethereum layer-2 Metis network

by SuperiorInvest

Decentralized liquidity protocol Aave deployed on Ethereum (ETH) the Metis Layer 2 scaling platform that brings a number of decentralized finance (DeFi) features and products to its ecosystem.

Aave’s community recently voted for of a zero-knowledge (zk) EVM-deployed zkSync design that paves the way for the DeFi protocol to take advantage of the powerful performance improvements provided by the scaling infrastructure.

A number of different ones zk-proof-powered layer-2 protocols are developed by participants in the Ethereum ecosystem and provide the wider space with a choice of infrastructure for scaling their respective platforms.

While Aave has yet to deploy on zkSync Era, it has announced deployment of V3 of its protocol on Metis’ Optimistic rollup scaling protocol. The latest version of the Aave protocol is touted to benefit users across both protocols, with Metis users benefiting from the provision of DeFi lending and borrowing services.

Ethereum.org highlights the main difference between optimistic summaries and exp summaries. The former processes off-chain transactions before publishing data on-chain, with a time frame for network participants to challenge the validity of transaction data.

Experience rollups meanwhile, it transacts off-chain and sends large batches on-chain using a single proof of validity without the network verifying the data.

The Metis team highlighted a number of ways users in its ecosystem can benefit from deploying Aave. This includes asset lending with less collateral in the Aave High-Efficiency mode, improved risk management with supply and borrowing limits, as well as silent lending to reduce exposure to potential market contagion.

Aave’s isolation mode also increases the amount of collateral assets, its Cross-Chain portals provide access to wider DeFi solutions, and its gas optimization also reduces transaction fees.

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Aave is renowned in the DeFi space with over $5.5 billion in total value locked in the protocol. V3 of the DeFi liquidity protocol has been deployed on Ethereum mainnet in January 2023after its launch on a number of Ethereum layer 2 protocols, including Avalanche, Arbitrum, Optimism and Polygon.

1inch Network, another prominent DeFi player, has also opted for zkSync to deploy its aggregation and limit order protocols, while Uniswap token holders they voted to deploy to the Polygon zkEVM roll-up solution in April 2023.

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