Aave Community’s ARFC Proposal for Deploying V3 MVP Version 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 voted in support of the ARFC proposal for deploying the V3 MVP version on the Polygon zkEVM main network. This proposal aims to enhance the efficiency and scalability of the Aave platform and reduce risks by setting conservative parameters.

Outline

1. Overview of the Aave Community’s ARFC Proposal
2. Why the Deployment of Aave V3 is Important
3. The Benefits of Deploying Aave V3 on Polygon zkEVM Main Network
4. Reducing Risks with Conservative Risk Parameters
5. Limiting the Inflow of Assets on the Network
6. Adding Only Three Collaterals and One Loanable Asset
7. Conclusion
8. FAQ

1. Overview of the Aave Community’s ARFC Proposal

The Aave community’s ARFC proposal for deploying V3 MVP version on the Polygon zkEVM main network aims to enhance the efficiency and scalability of the Aave platform. This proposal received 100% support and will enter the formal online voting.

2. Why the Deployment of Aave V3 is Important

The deployment of Aave V3 is critical to ensure that the platform remains competitive in the fast-paced decentralized finance (DeFi) ecosystem. Aave V3 will introduce new features such as Dynamic Risk Parameters, Credit Delegation, Flash Loans, and more. These features will provide greater flexibility to users and attract more liquidity to the platform.

3. The Benefits of Deploying Aave V3 on Polygon zkEVM Main Network

The deployment of Aave V3 on Polygon zkEVM main network will allow users to enjoy fast transaction times and lower gas fees. The Polygon network is a side-chain solution that has been designed to scale Ethereum-based applications. The zkEVM (zero-knowledge Ethereum Virtual Machine) is a layer-2 scaling solution that uses zero-knowledge proofs to enhance scalability further.

4. Reducing Risks with Conservative Risk Parameters

To reduce risks associated with the deployment of Aave V3 on Polygon zkEVM main network, the ARFC proposal recommends setting conservative risk parameters. This will enable development and risk service providers to conduct a more in-depth analysis of the zkEVM network.

5. Limiting the Inflow of Assets on the Network

In order to further reduce risks, the ARFC proposal proposes limiting the inflow of assets on the network. This will help to control the amount of collateral deposited on the platform and reduce the risk of price volatility.

6. Adding Only Three Collaterals and One Loanable Asset

To keep the risks as low as possible, the proposal suggests the addition of only three collaterals (WETH, WMATIC, and USDC) and one loanable asset (USDC).

7. Conclusion

The deployment of Aave V3 on Polygon zkEVM main network represents a significant step forward for Aave in its quest to remain competitive in the DeFi ecosystem. With faster transaction times, lower gas fees, and more flexibility, the platform is poised to attract more liquidity and deliver more value to its users. The conservative risk parameters and limited range of assets are essential to reduce risk and ensure that the deployment is secure.

8. FAQ

1. What is the Aave Community’s ARFC proposal?
The ARFC proposal is a “temperature check” proposal that aims to enhance the efficiency and scalability of the Aave platform through the deployment of Aave V3 on Polygon zkEVM main network.
2. What are the benefits of deploying Aave V3 on Polygon zkEVM main network?
Users will enjoy faster transaction times, lower gas fees, and greater flexibility.
3. How will risks be reduced?
Risk parameters will be set conservatively, and the range of assets will be limited to reduce the potential for price volatility.