After receiving overwhelming support from its tokenholders, Aave (AAVE) is set to launch the third version of its lending and borrowing protocol on the zero-knowledge Ethereum Virtual Machine (zkEVM). The voting closed on April 16, and over 99% of the tokenholders who cast their ballots voted in favor of the proposal.
This new version of the protocol aims to enhance the scalability and security of the platform. The zkEVM technology allows for a higher throughput of transactions, making it possible to process more transactions per second. Additionally, the zero-knowledge proof system provides an added layer of privacy and security for users.
Aave has been one of the most successful DeFi protocols in the market, with over $16 billion in total value locked (TVL) as of April 2021. The platform has seen significant growth in the past year, with its TVL increasing by over 20 times since April 2020.
The launch of the third version of the protocol is expected to further boost Aave’s growth and cement its position as one of the leading DeFi protocols in the market. With its focus on scalability and security, Aave is well-positioned to meet the growing demand for DeFi solutions.
However, the launch of the new protocol is not without its challenges. The transition to the zkEVM technology will require significant changes to the platform’s codebase, which could result in some disruptions for users. Additionally, the increased throughput of transactions could also lead to higher gas fees on the Ethereum network.
Despite these challenges, the Aave team is confident that the benefits of the new protocol outweigh the risks. The team has been working closely with leading DeFi developers and auditors to ensure a smooth transition to the new technology.
Overall, the launch of the third version of Aave’s lending and borrowing protocol on the zkEVM is a significant development for the DeFi industry. It demonstrates the growing demand for scalable and secure DeFi solutions and highlights the role that innovative technologies like zkEVM are playing in driving the growth of the industry.