Aave Expands to Non-EVM Networks: V3 Launch on Aptos

Aave Expands to Non-EVM Networks: V3 Launch on Aptos

Aave has made a significant move beyond Ethereum-compatible chains with the launch of its V3 protocol on the Aptos blockchain. This marks an important transition for Aave as it strives to establish itself as a universal liquidity layer. By tapping into Aptos, Aave aims to enhance the DeFi landscape and create new opportunities for borrowing and lending.

Key Takeaways

Aave has officially launched its V3 protocol on the Aptos blockchain, a significant step into non-EVM territory.
The mainnet deployment allows for the use of various stablecoins, including Aptos, USDC, and Tether.
Aave targets the integration of novel collateral types, especially liquid staking tokens, to enhance borrowing and lending options.
The deployment involved comprehensive technical work and rigorous security measures to ensure a robust launch.
Aave’s move to Aptos signifies a broader shift toward multichain finance and scalable DeFi solutions.

Aave's Expansion Beyond Ethereum

On August 20, Aave, a prominent DeFi lending provider, announced the launch of its V3 protocol on the Aptos blockchain. This deployment, executed by Aave Labs for the Aave DAO, marks the protocol’s first foray into a non-EVM (Ethereum Virtual Machine) chain, breaking a five-year tradition of operating solely within the Ethereum ecosystem.

Key Features of Aave V3 on Aptos

The initial offering on Aptos will support several key assets, including Aptos, sUSDe, USD Coin (USDC), and Tether (USDT). Supply and borrow caps will be adjusted based on user demand. Developers will also gain access to a robust infrastructure to create various on-chain financial applications.

Aptos has developed a rapidly growing stablecoin economy, primarily with USDT, valued at approximately $1.3 billion. For Aave, which has historically managed net deposits exceeding $50 billion, this represents a new pool of assets for investment and lending activities.

Innovations in Borrowing and Lending

The integration of Aave V3 is set to introduce innovative collateral types, particularly focusing on liquid staking tokens. Current data shows that only 8.1% of staked Aptos (APT) is in liquid staking tokens, compared to 76% that remains natively staked. Both Aave and Aptos foresee substantial opportunities to stimulate a more vibrant borrowing and lending market on this blockchain.

Technical Advancements and Security Measures

Launching Aave V3 on a non-EVM chain necessitated extensive technical work. The protocol was completely rewritten in the Move programming language, its front-end interface and software development kit were rebuilt, and its core business logic was adapted for the Aptos virtual machine.

Understanding the significant risks associated with deploying on a new virtual machine, Aave Labs implemented a thorough security strategy. This process included architecture reviews and audits conducted by reputable firms like Zellic, Ottersec, and Certora.

To further ensure security, a Cantina mainnet capture-the-flag competition was held to rigorously test the code. Additionally, an active bug bounty program offering $500,000 in GHO tokens continues to emphasize Aave's commitment to its security-first approach.

Conclusion: A New Era for Multichain Finance

The launch of Aave V3 on Aptos exemplifies the advancing landscape of multichain finance, bridging Ethereum-rooted DeFi with a non-EVM blockchain. This development positions Aptos as an ideal environment for scalable DeFi solutions, paving the way for future protocol expansions and enhancing cross-chain liquidity.