Aave Unveils V3 On Aptos Testnet, Signifying Its Inaugural Entry Into Non-EVM Blockchain

This decentralized finance (DeFi) lending platform Aave has announced that Aave V3 has been deployed on the testnet of Aptos , a Layer 1 blockchain, which marks Aave's first venture into a non-EVM ecosystem. This testing phase aims to evaluate the security, performance, and reliability of Aave V3 on Aptos as a precursor to a potential mainnet release.

This deployment follows a community-led temperature check proposal and a following snapshot vote that garnered approval from the community. The proposal from the Aptos Foundation, which oversees the development of the Aptos blockchain, highlighted the benefits of its deployment, including its high transaction throughput, minimal costs, and enhanced security features provided by the Move programming language.

Aave Labs, the team behind Aave's development, believes these elements position Aptos favorably as Aave’s first launch outside of the Ethereum Virtual Machine (EVM) ecosystem. The platform has shown remarkable growth, with its total value locked (TVL) skyrocketing from a little over $100 million to about $1.8 billion by the end of 2024, showcasing its rising attractiveness for DeFi solutions. The previous year's announcement of native support for USDC and USDT on Aptos further expanded the collateral options available, pending evaluations from Aave DAO's risk management team and community consensus.

The collaboration with Chainlink has been instrumental in facilitating the deployment on the Aptos testnet. Aave Labs partnered with both the Aptos Foundation and Chainlink to ensure readiness for production price feeds for Aave V3 on Aptos. This endeavor prioritized security from the very beginning, integrating security experts to maintain high safety standards, which are core to Aave's development philosophy.

Steps To Join The Testnet

To engage with the Aave V3 testnet, users need to install the Petra wallet, a specialized tool for interacting with the Aptos blockchain. Users can obtain APT tokens via the Aptos testnet faucet and can request market assets using the testnet UI faucet. Once these steps are completed, participants can explore the functionality of the testnet, making use of any supported assets available in this environment.

Throughout the testnet phase, Aave Labs intends to rigorously assess the Move-based implementation of Aave V3 to guarantee its safety, reliability, and performance prior to a mainnet launch, contingent on governance approval. This phase will also include close cooperation with the Aptos team, security specialists, and auditors. Security audits are already being arranged with firms such as Certora, SpearBit, and OtterSec, and there will be a security contest after the audit process. Additional security measures may be introduced over time, with regular updates communicated to the DAO and service providers.

Aave Labs will collaborate with Chainlink to integrate oracle and Cross-Chain Interoperability Protocol (CCIP) support, while also consulting other Aave DAO service providers to identify the necessary infrastructure and tools for a successful Aptos mainnet launch.

Aave operates as a non-custodial liquidity market protocol, inviting users to become liquidity providers by contributing their funds and earning passive income from accrued interest. Conversely, users can assume the role of borrowers by accessing funds through either perpetual borrowing or single-block liquidity models. This framework allows participants to engage in a flexible and decentralized manner with the protocol.

Aave V3 introduces enhancements including improved capital efficiency, heightened security measures, and cross-chain capabilities, all aimed at fortifying decentralization within the protocol. Noteworthy features encompass an isolation mode that permits Aave Governance to classify new assets as isolated assets with defined debt limits, alongside an efficiency mode (E-mode) that optimizes capital usage when the collateral and borrowed assets share a close price correlation.