DeFi Giant Aave Set to Rival Ethereum, BNB Chain, Solana, Tether, And More

LUCKNOW (CoinChapter.com) — Decentralized finance (DeFi) lending protocol Aave plans to launch its own blockchain network after the completion of its highly anticipated V4 upgrade, according to its CEO, Stani Kulechov. He hinted at a potential launch timeline of 2025 or sooner, following a proposal outlining the development of Aave Network as part of the project’s strategic 2030 roadmap.

AAVE Stablecoin in Pipeline

According to the proposal, the Network would serve as the primary hub for Aave and its native stablecoin GHO while maintaining a multichain and network-agnostic approach. This means that the network would be compatible with various blockchain ecosystems, allowing for seamless integration and interoperability.

The proposal further suggests that the GHO stablecoin could be used to pay gas fees on the network. Additionally, the AAVE token would be the main staking asset for decentralized validators and sequencers. This move could potentially increase the utility and demand for both tokens within the ecosystem.

Aave’s Growth and Dominance in DeFi

Aave’s decision to launch its own blockchain comes at a time when the protocol is experiencing significant growth and dominance in the DeFi space. Aave is currently the largest lending protocol. Its with total value locked (TVL) has exceeded $13 billion, making it the third-largest DeFi project overall.

Originally built on the Ethereum blockchain, the network has since expanded to other prominent networks like Avalanche. Marc Zeller, a key member of the network governance team, claimed that if Aave existed as an independent chain, it would be the largest Ethereum Layer-2 network. It would also surpass giants like Optimism and Arbitrum.

Will All Dapps Really Launch Their Own Blockchain?

The news of Aave’s blockchain plans has been met with enthusiasm from the crypto community. Jason Ma, the head of DeFi at Axelar Foundation, stated that “all successful apps will launch their own chains over time,” highlighting the growing trend of decentralized applications (dApps) launching their own dedicated blockchains.

Zeller further emphasized the potential impact of the Aave Network, claiming 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 could have far-reaching implications for the DeFi ecosystem. It could potentially attract more users and liquidity to the Aave platform while also fostering innovation and development within the broader DeFi space. Additionally, the network’s multichain compatibility could facilitate greater interoperability and collaboration among various blockchain ecosystems.