Aave V3 Considers Deployment on Coinbase-Backed Layer-2 Blockchain

• Aave community is mulling over a proposal to launch V3 on the Coinbase-backed Layer-2 blockchain solution, Base network.
• The temperature check phase will allow the community members to experience the platform and provide initial feedback.
• The Base team has completed its first hardfork, Regolith, in testnet and is waiting for Optimism’s June upgrade (Bedrock) before moving on to internal and external audits stage.

Aave Considering Layer-2 Blockchain Solution

The Aave community is mulling over a proposal to launch its V3 on the Coinbase-backed Layer-2 blockchain solution, Base network. This idea was proposed by analytics firm Flipside Crypto and brought to attention of Aave’s governance forum by Flipside’s protocol specialist Francis Gowen. He highlighted that the integration could result in multiple revenue streams for Aave V3 and open it up to a significantly larger user base.

Temperature Check Ongoing

The presently ongoing temperature check phase will allow the community members to experience the platform and provide initial feedback, based on which the next step of decision might be taken. If preliminary votes are sufficient, further discussions regarding risk parameters evaluations will take place before going into an on-chain vote as a final step before deployment.

Base Mainnet To Launch After Optimism Upgrade

Base network project has launched its testnet which already displayed significant developer activity with 18,000 developers deploying 55,000 smart contracts indicating potential growth for mainnet once it launches later this year. Once Optimism completes its June upgrade (Bedrock), Base will move onto internal and external audits stage before launching mainnet.

Aave V3 Potential Benefits

Aave is a decentralized and non-custodial liquidity market protocol that allows users to lend, borrow, and generate interest on multiple crypto assets including stablecoins with potential benefits from integrating it with Base Network such as opening up access to larger user base and generating multiple revenue streams for Aave V3 when deployed.

Conclusion

The Aave community is considering deploying its V3 on the Coinbase backed Layer-2 blockchain solution: Base Network following positive feedback from their temperature check phase process which includes further discussion regarding risk parameter evaluations followed by an on-chain vote if successful before deployment of mainnet after completion of Optimism’s June upgrade (Bedrock).