DeFi lending and borrowing protocol, Aave Finance is looking to become multi-chain. Aave currently functions on two networks, Ethereum and Polygon. Plans on expansion are in the works.
According to CEO and founder, Stani Kulechov, the plan is to get the lending protocol integrated on several networks. Kulechov declared this at the ChainLink Smart Contract Summit. While presenting, Kulechov cited some networks being considered, with Solana being at the top of the list. Other networks include Avalanche, and Optimistic Rollup Solutions, Arbitrum, and Optimism.
Aave Pools $21.5 Billion in TVL
Aave is leading the pace among decentralized lending protocols, with a TVL of $21.5 billion across Ethereum and Polygon networks. As regards expansion on Solana, Kulechov noted that compatibility with the Ethereum Virtual Machine prompted the team to include other network options.
After starting off on the Ethereum network, Aave got launched on the Polygon in March and has performed beyond expectations since then, pooling massive trading volume and Total Value Locked. In four months, Aave boasts of $4 billion on Polygon network. Aave rolled out an AMM liquidity pool again in March when it first hinted at making a foray into new markets.
Aave’s foray into new markets is expected to be gradual and in numerous phases. Kulechov revealed that the protocol is up for multi-chain functionality on governance. Becoming multi-chain will open the protocol to new possibilities, one of which is users will be able to transfer collateral from one network to the other without having to worry about losing their assets. Also, they can borrow on a different chain from where their collateral is kept.
Aave to Release ‘Permissioned Liquidity Protocol’ for Institutional Investors
Among all the projects lined up for Aave, one that resonates more is the Aave Pro, which is touted to be a custom-made DeFi lending and borrowing protocol for institutional investors. Aave has observed the growing interest of investors in decentralized finance and aims to create a market for this set of investors. However, Aave Pro will be a permissioned liquidity protocol with KYC and other requirements.
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