Aave V3 MVP Version to be Deployed on the Polygon zkEVM Main Network

On March 31st, according to the voting page, the Aave community’s ARFC proposal for “Deploying V3 MVP Version on the Polygon zkEVM Main Network” (ARFC proposal is usually considered as a “temperature check”) received 100% support and will enter the formal online voting. The proposal points out that the deployment of Aave V3 requires less development effort, but in order to reduce risks, it is recommended to limit the inflow of assets and set conservative risk parameters to enable development and risk service providers to conduct a more in-depth analysis of the zkEVM network. The proposal proposes to add only three collateral (WETH, WMATIC, and USDC) and one loanable asset (USDC) to reduce risk.

The ARFC proposal of the Aave community on “Deploying V3 MVP Version on the Polygon zkEVM Main Network” has been voted through

Introduction

On March 31st, the Aave community’s ARFC proposal for “Deploying V3 MVP Version on the Polygon zkEVM Main Network” received 100% support and will enter formal online voting. The proposal suggests that the deployment of Aave V3 requires less development effort but recommends limiting the inflow of assets and setting conservative risk parameters to enable development and risk service providers to conduct a more in-depth analysis of the zkEVM network.

Outline

1. A Brief Introduction to Aave
2. What is an ARFC Proposal?
3. Launching Aave V3 MVP on the Polygon zkEVM Main Network
4. Benefits of Deploying Aave V3 MVP on the Polygon zkEVM Main Network
5. Possibility of Reducing Risks
6. Conclusion
7. FAQs

Article

Aave is a decentralized lending and borrowing platform built on the Ethereum blockchain. It was launched in November 2017 as ETHLend, but later it rebranded to Aave in September 2018. Aave’s objective is to build a financial system without intermediaries, where users have control over their funds without the need for an intermediary.

What is an ARFC Proposal?

An ARFC proposal, also known as a temperature check proposal, is a proposal submitted by the Aave community to the governance forum. This proposal usually involves stakeholders’ input, and voters will indicate their approval or disapproval of the proposal. An ARFC proposal provides an excellent opportunity for the community to come together and share their opinions about proposed changes to the Aave protocol.

Launching Aave V3 MVP on the Polygon zkEVM Main Network

On March 31st, the Aave community’s ARFC proposal for “Deploying V3 MVP Version on the Polygon zkEVM Main Network” received 100% support and will enter formal online voting. Aave V3 is an upgrade to its lending and borrowing protocol, and it aims to improve efficiency while reducing costs. This latest version of Aave focuses on improving capital efficiency, optimizing gas cost, and introducing new features.

Benefits of Deploying Aave V3 MVP on the Polygon zkEVM Main Network

The Polygon zkEVM is based on the zk-rollups structure that provides a scaling solution that reduces the transaction processing time while keeping the security of the blockchain intact. The deployment of Aave V3 on the Polygon zkEVM main network would provide several benefits. First, it would increase Aave’s capital efficiency, allowing users to borrow at a lower cost. Second, the Polygon zkEVM network’s reduced costs and improved speed would enable Aave to compete effectively with centralized lending platforms. Finally, the upgrade would enable Aave to scale its operations and increase its user base.

Possibility of Reducing Risks

The proposal suggests that the deployment of Aave V3 on the Polygon zkEVM main network would require less development effort. However, to reduce risks, the proposal recommends limiting the inflow of assets and setting conservative risk parameters that would enable development and risk service providers to conduct a more in-depth analysis of the network. The proposal proposes adding only three collateral (WETH, WMATIC, and USDC) and one loanable asset (USDC) to reduce risk.

Conclusion

The Aave community’s ARFC proposal for “Deploying V3 MVP Version on the Polygon zkEVM Main Network” received 100% support and will now enter a formal online voting process. Deploying Aave V3 MVP on the Polygon zkEVM main network would enhance capital efficiency, lower transaction costs and speed up transaction processing. The reduced costs and improved speed would enable Aave to compete effectively with centralized lending platforms.

FAQs

1. What is Aave?
– Aave is a decentralized lending and borrowing platform built on the Ethereum blockchain.
2. What is an ARFC proposal?
– An ARFC proposal, also known as a temperature check proposal, is a proposal submitted by the Aave community to the governance forum.
3. What benefits will deploying Aave V3 on the Polygon zkEVM main network provide?
– Deploying Aave V3 MVP on the Polygon zkEVM main network would enhance capital efficiency, lower transaction costs and speed up transaction processing.