Sonic, formerly known as Fantom, has passed the first phase of launching its third-generation lending protocol Aave on its blockchain.
The on-chain temperature check to boost Aave v3 deployment on the newly launched Sonic Layer-1 network reached quorum on December 27, according to Snapshot vote. The screening sought to assess community support for integrating Aave, the largest decentralized financial lending protocol, with Sonic's blockchain.
Aave Chain, Master Delegate at AaveDAO, Submitted The proposal, which will move to Aave's request for comment stage, allowing comments from members of management and service providers.
A successful ARFC will unlock a final Aave improvement proposal or an AIP vote to approve shipping of Aave v3 on the new Layer 1 network.
Aava dominates the DeFi lending market with a total value of $xyz billion, according to DefiLlama data. Launching on L1 will allow Sonic users to leverage the original on-chain line of credit and provide liquidity to other investors.
Rebranding Sonic from the Fantom era could make the publishing process easier. The team, which includes a roster of veteran builders like Andre Cronje, previously grew Fantom to a “peak TVL of approximately $14.5 billion in 2021.”
The new L1 has also built its own blockchain to carry out 10,000 transactions per second, with monetization of fees to attract web3 developers.
As Aave considers extending its protocol, it will likely withdraw its lending marketplaces from Polygon. The DeFi lender cited issues with a Polygon proposal that would expose Aave's original collateral to bad debt.
Polygon co-founder Sandeep Nailwal accused Aave from bullying the ecosystem and using anti-competitive tactics. Stani Kulichov, founder and CEO of Aave, refuted these allegations and stressed that the decision is aimed at protecting user security.
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