Aave, the decentralized finance (DeFi) lending protocol, has announced its plans to launch its own blockchain network following the completion of its highly anticipated V4 upgrade. The CEO of Aave, Stani Kulechov, hinted that the launch could happen as early as 2025, marking a significant milestone for the project’s strategic 2030 roadmap.
According to the proposal, the Aave Network will serve as the main hub for Aave and its native stablecoin GHO. The network will adopt a multichain and network-agnostic approach, ensuring compatibility with various blockchain ecosystems for seamless integration and interoperability.
One notable feature of the proposed network is the use of the GHO stablecoin to pay gas fees. Additionally, the AAVE token will serve as the primary staking asset for decentralized validators and sequencers. This strategic move is expected to increase the utility and demand for both tokens within the Aave ecosystem.
The decision to launch its own blockchain comes at a time when Aave is experiencing significant growth and dominance in the DeFi space. Currently, Aave is the largest lending protocol, with a total value locked (TVL) exceeding $13 billion, making it the third-largest DeFi project overall.
Originally built on the Ethereum blockchain, Aave has expanded to other networks like Avalanche. Marc Zeller, a key member of the network governance team, believes that if Aave existed as an independent chain, it would be the largest Ethereum Layer-2 network, surpassing giants like Optimism and Arbitrum.
The announcement of Aave’s blockchain plans has been met with enthusiasm from the crypto community. Jason Ma, the head of DeFi at Axelar Foundation, predicts that successful apps will eventually launch their own chains, highlighting the growing trend of dApps launching dedicated blockchains.
Zeller further emphasized the potential impact of the Aave Network, stating that with a market cap of $20.5 billion, it would rank as the third-largest chain after Ethereum and Tron, surpassing other Ethereum-based Layer-2 networks.
The launch of the Aave Network is expected to attract more users and liquidity to the Aave platform, while also fostering innovation and development within the broader DeFi space. Its multichain compatibility will facilitate greater interoperability and collaboration among various blockchain ecosystems.