DeFi giant Aave prepares for “Polygon zkEVM” mainnet beta version = report

Aave considers zkEVM deployment

It was learned on the 3rd that major DeFi (decentralized finance) lending protocol Aave has started considering deployment to the scaling solution “Polygon zkEVM” scheduled to be released at the end of March.

Based on a governance proposal made by Marc Zeller, Aave’s integration lead, it was reported exclusively by overseas media The Block.

Polygon zkEVM is scheduled to release the mainnet beta on March 27th, and discussions will proceed towards the deployment of Aave v3’s MVP (minimum product). Aave aims to quickly increase its presence in new markets that are attracting a lot of attention.

Aave is a product that occupies the top share in the DeFi (decentralized finance) lending field. Tokens can be used as collateral to borrow tokens such as stablecoins, or assets can be locked into smart contracts to provide liquidity and earn interest.

According to the data site DeFillama, the total TVL (Total Locked Value) of seven networks, including Ethereum (ETH), is about 620 billion yen ($4.6 billion: as of March 3, 2023).

connection:What is AAVE | Explaining the features and future potential of a promising DeFi platform

When implementing Polygon zkEVM, we plan to limit the number of crypto assets (virtual currencies) that can be used as collateral in Aave to 3 types and set the risk parameters more conservatively.

Cryptocurrencies being considered as collateral include Ethereum (ETH), Polygon (MATIC) alternative (Wrapped) token, and USD stablecoin USDC. Also, the assets that can be borrowed are expected to be limited to USDC.

As a future development, he added that he would explore a plan to make it possible to issue “GHO”, which is scheduled to be launched as Aave’s own stablecoin, on Polygon zkEVM.

What is Polygon zkEVM?

Polygon zkEVM (formerly Polygon Hermez) is a ZK (zero-knowledge proof) rollup-based Layer 2 scaling solution. ZK Rollup aggregates transactions and processes them off-chain, storing only the generated cryptographic proofs on the Ethereum (L1) blockchain. It has high-speed finality and realizes large-scale transaction processing at low cost.

Among ZK rollups, Polygon zkEVM is designed to emulate EVM so that Ethereum smart contracts can be deployed as-is. As a developer, there is an advantage that it is easy to deploy Ethereum applications on zkEVM, and it is possible to deploy applications using familiar Ethereum tools such as wallet Metamask.

Polygon zkEVM launched its final testnet last December. DeFi (decentralized finance) projects Aave and Uniswap, social platform Lens, and game studio Midnight Society were all set to participate in the testnet.

connection:Polygon Launches Final Testnet for L2 ‘Polygon zkEVM’

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