Decentralized finance (DeFi) protocol Aave community plans deployment of its Aave v3 MVP on the Polygon zkEVM mainnet to establish an early strategic presence on the new network.
Marc Zeller, popular Aave DAO member and founder of the Aave Chan Initiative, in a tweet on March 3 revealed a governance proposal on deploying Aave v3 on Polygon zkEVM. Zeller argues that deploying Aave V3 requires minimal development as ZkEVM is compatible with the Ethereum Virtual Machine (EVM). In fact, Aave V3 was successfully deployed on the zkEVM testnet in October.
The @0xPolygon ZkEVM network will be live on March 27th. As a supporter of L2 diversity, The ACI published a proposal to deploy @AaveAave V3 there, as close as possible to “day one” of this network.
Feel free to participate in the governance discussionshttps://t.co/ep23D2Rl0R pic.twitter.com/Qbatux087H
— Marc Zeller 👻 💜 🦇🔊 (@lemiscate) March 3, 2023
Polygon zkEVM mainnet beta is scheduled to be launched on March 27. It is an EVM-equivalent zk-rollup L2 representing a huge step towards scaling Ethereum and bringing Web3 to the masses.
According to the governance proposal, deployment of Aave V3.0.1 on the ZkEVM L2 network, also known as “MVP V3,” will give an early strategic presence to Aave. The DeFi protocol has already been deployed on leading blockchains such as Polygon and Avalanche.
Furthermore, the proposal suggests limiting asset onboarding and setting conservative risk parameters, while conducting a deeper analysis of the ZkEVM network. It also suggests that onboarding three collaterals WETH, WMATIC, and USDC, as well as, one borrowable asset USDC will reduce risk exposure.
Will It Impact Polygon (MATIC) and AAVE Prices?
Polygon zkEVM is the first fully Ethereum Virtual Machine composable ZK-rollup to reach the mainnet stage. It will enable faster and cheaper transactions. Deployment on Aave will give the protocol an early advantage.
The zkEVM launch will increase Polygon (MATIC) price. The MATIC price is currently trading at $1.17, down 4% in the last 24 hours. The market-wide selloff has caused massive liquidations in the last 24 hours.
Meanwhile, AAVE price trades at $76.25, down nearly 4% in the last 24 hours.
Also Read: Massive ETH Dump By Whales As Developers Reveal Ethereum Shanghai Upgrade Date
Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.
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