Open Source Protocol Aave’s Marc Zeller has reportedly proposed to launch the Aave V3 lending protocol on the BNB Chain. Floating a governance proposal on Tuesday to deploy Aave V3 on Binance’s DeFi chain, Zeller envisions offering an array of digital assets as collaterals, viz. BNB, WBTC, BETH, WETH, USDC, and USDT.
Sharing the development, Chinese reporter Colin Wu tweeted:
The Aave community proposes to deploy Aave V3 on the BNB Chain and select assets as collateral, including BNB, WBTC, BETH, WETH, USDC, and USDT. The largest lending agreement of BNBChain is Venus Protocol, but there have been many security problems. https://t.co/u3D0dXDMdg
— Wu Blockchain (@WuBlockchain) April 4, 2023
Following the footsteps of Uniswap (being recently deployed on the blockchain of Binance via a wormhole bridge), AAVE is eyeing to bank on the thriving DeFi community. Zeller is proposing to opt for the third-largest DeFi network to launch Aave V3 for a reason.
The Aave-BNB Chain association is reported to benefit the community considerably. In that, the Binance blockchain users can expect to experience diversity and enhanced utility given that Aave is a premier lending protocol on Ethereum.
Aave’s approximately $5.6 billion in TVL (total-value locked), per DeFi Llama, in seven blockchains, places it in the top category of prominent crypto lending market stakeholders.
The recent governance proposal floated by Aave reportedly reads,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.
Upon being approved by the community, users would be able to give collateral in the form of BNB, WBTC, BETH, WETH, USDC, and USDT. The proposal would entail seeking feedback from the Aave community. Such feedback would also involve getting acquainted with the potential risks and deployment nitty gritties. Aave also reportedly intends to expand on 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.
