Aave has launched its lending markets on Sonic, a high-performance blockchain that evolved from Fantom. This is Aave’s first Layer 1 expansion of the year, marking another step in its efforts to expand across blockchains. The move to deploy Aave version 3 on Sonic follows a vote approving a governance proposal from a member and delegate of the Aave Chan Initiative.
According to Aave, Sonic’s monetization model allows decentralized protocols like Aave to earn a share of the transaction fees generated by user activity. As such, fee monetization could potentially become an additional income source for Aave.
The expansion follows Aave governance’s decision to cease lending operations on the Polygon PoS chain, citing potential risks from Polygon’s pre-PIP to rehypothecate stablecoins through its native bridge. Although Polygon did not proceed with the pre-PIP and officially rejected it, Aave contributors maintained their original stance to halt operations on the chain.
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