Summary:
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.
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.
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.
Zerebro, one of the largest AI projects, has seen its price dropped sharply today, going…
Ethereum is back in the spotlight, not for explosive price action, although it has made…
Ajman, UAE, 25th April 2025, Ajman Bank P.J.S.C. (“Ajman Bank” or “the Bank”), the first Islamic…
The Rise of Autonomous Finance: How 9M is turning AI into a fully operational investment…
Douglas, Isle of Man, 25th April 2025, ZEX PR WIRE, Echo is about to launch…
Tortola, BVI, 25th April 2025, ZEX PR WIRE, World of Dypians (WoD), a highly immersive…