Aave Progresses With Sonic Expansion Proposal
Top DeFi protocol Aave is considering a potential expansion to Sonic, a new Layer 1 blockchain by Fantom.
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The Aave Request for Comment (ARFC) published on January 31 highlights Sonic’s benefits, such as its ability to process 10,000 transactions per second and its fee monetization model for app builders.
Aave is a multichain protocol, operating on Ethereum, Avalanche, BNB Chain, ZKsync Era, Base, and more.
According to the ARFC, Sonic is a strong candidate for the deployment of Aave V3.
“In addition, the fee monetization for apps has potential to be an additional income source for Aave,” Aave Chain Initiative mentions.
Previously, in December, the Aave community supported the idea of expanding Aave V3 to Sonic. However, the governance process involves several stages.
The new proposal outlines updated risk parameter specifications and Proof of Liquidity and Deposit commitments, including $15 million in funding from Sonic, $800,000 in stablecoins from Aave, up to 50 million $S tokens, and $20 million worth of USDC.
Voting on the proposal will take place from February 1 to February 4, 2025. If approved, the community will move toward final confirmation and enforcement of the proposal.
Sonic is a fast and efficient Layer 1 blockchain that launched on December 18, 2024, as an upgrade from Fantom. It can handle thousands of transactions per second with almost no delay.
One of its key features is Fee Monetization (FeeM), which lets developers earn up to 90% of transaction fees from their apps. Sonic also has the Sonic Gateway, a decentralized bridge that makes it easy to move assets between Ethereum and Sonic.
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