Aave, the decentralized lending protocol, is exploring the deployment of an MVP of Aave version 3 on Polygon’s upcoming zkEVM Layer 2 network. This strategic move aims to establish Aave’s presence on the network early on, after the mainnet beta goes live on March 27.
The proposal suggests limiting the onboarding of assets and setting conservative risk parameters to reduce risk. The recommended collateral types are wrapped ETH, wrapped MATIC tokens, and USDC stablecoin, with only USDC being the borrowable asset.
The proposal also lays the groundwork for issuing Aave’s GHO stablecoin on the zkEVM network in the future if governance approves it.
Polygon’s zkEVM is a ZK-rollup that performs off-chain computations on a secondary layer, prioritizing security while enabling faster and cheaper transactions.
It’s equivalent to Ethereum’s Virtual Machine, which means the network is expected to support the same code as Ethereum. This will allow developers to onboard apps from Ethereum and use them on the zkEVM network without significant changes.
Aave has a history of working closely with core teams to implement its lending protocol, particularly on Polygon and Avalanche blockchains in 2021. Aave’s expansion onto Polygon’s sidechain network in 2021 drove increased activity on the network.