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HomeFintTechAave To Deploy V3 Lending Protocol On BNB Chain After Uniswap Crossover 

Aave To Deploy V3 Lending Protocol On BNB Chain After Uniswap Crossover 

Summary:

  • Aave-Chan creator Marc Zeller proposed launching the Aave V3 lending protocol on BNB Chain.
  • Zeller suggested deploying on Binance’s DeFi chain with a basket of digital assets as supported collateral including BNB, WBTC, BETH, WETH, USDC, and USDT.
  • The proposal comes after Uniswap deployed on Binance’s blockchain to tap into a massive DeFi user base and community.

A governance proposal to launch Aave V3 on BNB Chain was submitted on Tuesday as protocols in the decentralized finance (DeFi) ecosystem look to rapidly expand their footprints beyond Ethereum and tap significant crypto liquidity.

Indeed, community member Marc Zeller proposed deploying the Ethereum-based lending protocol on Binance’s blockchain, which also happens to be DeFi’s third-largest network after Ethereum and Tron.

Benefits For Aave And BNB Chain Users

Zeller’s proposal said the deployment could expand Aave’s presence and propel the protocol’s presence in a growing DeFi ecosystem. Binance’s blockchain currently holds the number three spot by total value locked among DeFi chains with over $5 billion in TVL, per Defi Llama data.

Tuesday’s governance proposal also argued that Binance’s blockchain stands to gain diversification and extra utility for its users as Aave is a top lending protocol on Ethereum. The DeFi lender’s $5.6 billion in TVL across seven blockchains makes the protocol a major stakeholder in the crypto lending market.

Deploying Aave V3 on the BNB Chain presents potential benefits for both Aave and BNB Chain ecosystems. Aave would gain access to BNB Chain’s user base, DeFi ecosystem, and potential additional revenue. In return, BNB Chain would benefit from having a flagship DeFi project like Aave on its platform, further diversifying DeFi options available to its users.

If approved by the community, users will be able to choose between BNB, WBTC, BETH, WETH, USDC, and USDT as collateral on the DeFi lender’s platform. The proposal will gather feedback from the Aave community first, including input on the proposed risk parameters and deployment details.

The DeFi lender also has eyes on expanding to two Ethereum L2 scaling networks – Starknet and Polygon.

Uniswap Deployment On BNB Chain Triggers Second-Order Effect

The proposal comes a few weeks after major crypto-decentralized exchange Uniswap deployed on BNB Chain via the wormhole bridge. Crypto speculators opined that the move galvanized a “second-order effect”, prompting users and protocols to reassess Binance’s blockchain as a prime location for expansion and DeFi liquidity.

Ryan Helton
Ryan Heltonhttps://etrendystock.com/
A Stock enthusiast since childhood, Ryan is known for his impeccable knowledge in the technology and gadgets niche. He has been working with eTrendy Stock as a contributor for most stock category and his articles are always well-researched and accurate.

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