- Protocol for decentralized financing Using ZKsync technology, Aave launched Aave V3 on the Era mainnet.
- The integration, which the teams believe has potential for institutional and privacy-focused DeFi applications, will employ price feeds from Chainlink.
As part of a larger embrace of its ecosystem, the pioneering decentralized lending protocol Aave launched Aave V3 on the Era mainnet, powered by ZKsync.
The Elastic Chain ecosystem, a network of chains driven by ZKsync technology, is intended to benefit from the launch by adding liquidity and other opportunities to produce return on tokens. In addition, zero-knowledge proof technology—which enables inexpensive but safe transactions—may be advantageous to Aave users.
Aave Labs’ founder and CEO, Stani Kulechov, claimed in a press statement that by combining ZK-proofs with the seamless Elastic Chain environment, Aave can achieve never-before-seen levels of scalability, anonymity, and security. This will enable Aave to grow the DeFi user base and explore new institutional use cases.
ZKsync co-inventor Alex Gluchowski stated that a larger audience will be able to utilize ZKsync to its maximum capacity with the launch of Aave on Era.
Allowing for the use of privacy applications
Aave on Era’s release may present new chances for privacy-focused DeFi apps. The teams involved believe that new institutional use cases, like private networks and networks tailored to particular asset classes, risk profiles, and user groups, could be made possible by the implementation.
Johann Eid, Chief Business Officer of Chainlink Labs, says that this launch represents a significant step forward for DeFi’s scalability and that the possibility of increased institutional usage is an exciting development for the field of onchain finance as a whole. Chainlink will send price feeds as part of the connection.
The technical review of the deployment by BGD Labs was found to be positive, and the Aave DAO has authorized USDC, USDT, WETH, and wstETH as the initial assets to be made available on Era.
In addition, the Aave DAO promised to employ liquidity mining to distribute airdrops that it got from the ZKsync network to its users. Merit programs, safety module deployments, liquidity incentives, and GHO—Aave’s overcollateralized native stablecoin secondary—will all be included in the distribution.
ZKsync is an Ethereum Layer 2 scaling solution that lowers expenses and boosts transaction network capacity. It employs ZK-rollup technology, which makes it possible to combine several transactions into a single proof that is then validated on the Ethereum network. Developers, companies, and financial institutions that use ZKsync to deploy customized ZK Chains make up the Elastic Chain ecosystem.
There are other products under the Avara brand that are also coming to ZKsync. The social media protocol Lens is moving from Polygon to ZKsync at the moment. As of right now, the move is scheduled for Q4.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
