Aave-Chan Proposes Deployment of Aave v3 on Sonic Blockchain

Aave-Chan Initiative, a prominent Aave DAO delegate and service provider, has introduced a proposal to deploy Aave v3 on Sonic, a newly launched layer-1 blockchain. The proposal, posted on Aave’s governance forum, marks a significant development for the decentralized finance (DeFi) ecosystem.

Sonic Labs announced the mainnet launch of its Ethereum Virtual Machine (EVM)-compatible blockchain, Sonic, on December 18. With this deployment, Aave v3, which currently boasts a total value locked (TVL) of over $22 billion, could expand its reach to this innovative blockchain.

Sonic Foundation’s Support

To facilitate this integration, the Sonic Foundation has pledged substantial support, including $15 million in funding, migration incentives, and allocations of up to 50 million Sonic tokens (S) alongside 20 million USDC. This robust backing is aimed at ensuring a seamless onboarding experience for the Aave ecosystem onto Sonic’s platform.

Governance Process

The proposal will follow Aave’s governance framework, starting with a temperature check to gauge community sentiment. If successful, it will proceed to the Snapshot stage, followed by the Aave Request for Comment (ARFC) and Aave Improvement Proposal (AIP) phases. The final decision will come through a governance vote that determines whether Aave v3 will be deployed on Sonic.

Sonic’s Unique Features

Sonic’s mainnet launch introduces the native token S, enhanced transaction finality, and a fee monetization mechanism designed to generate revenue for the network. According to Aave-Chan, these features could serve as a new income source for the Aave ecosystem, making Sonic an attractive proposition for integration.

Additionally, the Sonic Labs team has implemented a points-based airdrop system, distributing approximately 190.5 million S tokens to eligible community members. Fantom (FTM) token holders can upgrade their FTM to Sonic tokens on a 1:1 basis, adding another layer of value to the new blockchain.

Market Context

At the time of writing, Fantom (FTM) was trading at approximately $1.16, while Sonic’s entry into the blockchain space is anticipated to drive further innovation and growth within the DeFi landscape.

The proposal represents an exciting opportunity for both Aave and Sonic, potentially fostering deeper collaboration and expanding the capabilities of decentralized finance across new blockchain networks.