Aave Labs Proposes Aave V3 Launch on MegaETH Before Mainnet Debut

Aave Labs has put forth a proposal to deploy Aave V3 on MegaETH right at the mainnet launch, with the goal of attracting early liquidity and maximizing borrowing demand.

Key Takeaways

Aave Labs wants to launch Aave V3 on MegaETH during the mainnet debut to capture early user engagement and borrowing interest.
The proposal discusses the inclusion of both bridged and native tokens in the asset list.
Aave Labs will receive 30 million MegaETH points for lending and borrowing incentives.
6% of the MEGA token supply will be governed by a KPI framework to ensure alignment with Aave's performance benchmarks.
MegaETH has seen heightened activity recently, including a significant pre-deposit program with a considerable cap.

Aave proposes V3 launch on MegaETH

Aave Labs has introduced a proposal aiming for the launch of Aave V3 on MegaETH during its mainnet Day 0. This move is intended to foster rapid user growth, enhance liquidity, and generate significant borrowing demand. The proposal reaggroups discussions about the earlier V3 deployment, which now includes updated terms to be ratified by Aave’s risk service providers.

Aave's Strategy for Day 0 on MegaETH

While the initial proposals indicated that MegaETH was finalizing critical infrastructure like Chainlink oracles, recent developments have motivated Aave Labs to revive their plans. They believe that launching on MegaETH at the mainnet's start can effectively convert early network activities into valuable protocol use. Early positioning in the market is expected to attract supply and borrowing demand before liquidity spreads across various platforms.

The original asset list includes both bridged and native tokens. The bridged assets feature BTC.b, ETH, USDM, and various synthetic and staked assets like wstETH, ezETH, rsETH, USDe, and sUSDe. The native assets list encompasses MEGA, USDM-Y, and RBT. Chainlink is working on oracle support to ensure readiness for the mainnet's launch day.

Incentives and Performance-Based Rewards

Aave Labs is set to gain 30 million MegaETH points designed to incentivize lending and borrowing activities in the new market. These rewards will adhere to Aave's current go-to-market strategies. Points will be awarded to users via the interface, with redemption taking place on the MegaETH platform at the end of every two-month period. Note that only KYC-verified users will qualify for these rewards.

Additionally, MegaETH plans to allocate 6% of its MEGA token supply to a Key Performance Indicator (KPI) framework, as defined by Aave governance. This allocation creates a structured approach for long-term alignment between the protocol and the new layer-2 network, activating once Aave meets the established performance metrics set by the DAO.

If governance reaches a consensus, the proposal will move forward to a snapshot vote and an AIP that includes final token listings, oracle addresses, and risk parameters.

Context: Aave and MegaETH’s Recent Developments

This proposal emerges amid growing activity within the MegaETH ecosystem. In late November, the network initiated a substantial pre-deposit program that started with a $250 million cap and was expanded to $1 billion due to significant demand. This event has heightened interest around MegaETH’s real-time layer-2 design and its responsiveness to near-web2 standards.

Additionally, Aave has been actively enhancing its offerings. The protocol introduced its V4 roadmap, which will adopt ERC-4626-style vault accounting. This change aims to facilitate simpler integrations and minimize multichain friction. On November 20, Aave also launched a new savings application catering to retail users, making it easier for individuals to access stable yield opportunities.

With MegaETH approaching its production phase and Aave preparing for crucial upgrades, the forthcoming V3 release is anticipated to foster even closer collaboration between the two ecosystems as they aim for growth through 2026.