Aave V3 Has Launched On Linea Mainnet, Bringing Faster Transactions And Reduced Fees

This platform focuses on decentralized finance (DeFi) lending services Aave has announced the deployment of Aave V3 on the zero-knowledge Ethereum virtual machine (zkEVM) rollup that mirrors Ethereum, Linea mainnet. This rollout empowers users to engage in asset lending and borrowing while enjoying quicker transactions and lower fees.

The launch was orchestrated by a Web3 development initiative under Aave BGD Labs, acting on behalf of Aave DAO. Comprehensive risk evaluations were conducted by Chaos Labs, a specialized firm in on-chain risk management, alongside Llama Risk, which focuses on transparency and risk in DeFi. Furthermore, price feeds will be securely provided by Chainlink, a decentralized oracle network. The initial set of collateral assets available includes WETH, USDC, USDT, WBTC, wstETH, weETH, and ezETH.

Linea, a Layer 2 solution built on Ethereum, utilizes a technology stack based on zkEVM developed by Consensys. The inception of this platform is backed by over five years of cryptographic research and 20 months of dedicated development work. The Consensys team has carved out a significant reputation within the zero-knowledge (ZK) domain, contributing to tools like the GNARK library and actively participating in Ethereum’s Merge. Linea boasts robust relationships within the developer community, having collaborations with platforms like MetaMask, SMG, and Infura.

By launching on Linea, Aave harnesses the benefits of rapid transaction throughput and quick finality, ensuring that users experience streamlined processing and lower gas fees. Additionally, the partnership with Consensys products further simplifies access for users, potentially tapping into MetaMask's vast user base of 30 million, which enhances Aave’s reach and broadens its DeFi community.

One of the key benefits anticipated from the shift to Linea is its ability to manage a high volume of transactions and quick finalization, both essential characteristics for ZK networks seeking to enhance scalability. This will allow Aave to grow alongside Linea as the underlying technology matures. Furthermore, the collaboration with Consensys products such as MetaMask and Infura makes accessing decentralized finance (DeFi) much easier, possibly reaching MetaMask’s 30 million active users.

Moreover, as Aave stabilizes on Linea, the Consensys team plans to enable GHO, Aave’s proprietary stablecoin, for transactions using the MetaMask Debit Card, a feature exclusively available on the Linea network. With expected growth dynamics for Linea in the first half of the year, establishing Aave as the leading lending platform here will boost the sustainability and future development of the Aave protocol.

Aave DAO is also dedicated to redistributing any airdrops from the Linea ecosystem back to Aave users. These distributions could take various forms, including liquidity mining rewards, further incentives for GHO liquidity, deployments of safety modules, or merit-based programs. The Aave Chan Initiative (ACI) will manage any liquidity mining efforts linked to the Aave V3 launch on Linea.

What Is Aave V3? 

Aave operates as a non-custodial liquidity market protocol, allowing participation from users in two key roles: as liquidity providers or borrowers. As providers, users can contribute their assets to the platform and earn interest as passive income from loans. On the flip side, borrowers gain access to funds through various methods, such as perpetual borrowing or one-block liquidity. This framework offers a decentralized and flexible approach for users to engage with the platform.

Aave V3 introduces several enhancements like improved capital utilization, better security protocols, and cross-chain functionalities, all aimed at bolstering the platform's decentralization. Noteworthy features incorporate an isolation mode, permitting Aave Governance to list new assets as isolated ones with designated debt limits, coupled with an efficiency mode (E-mode) that maximizes capital efficiency when the collateral and borrowed assets have closely linked prices.