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Aave Community’s ARFC Proposal Receives 100% Support for Deploying V3 MVP Version on Polygon zkEVM Main Network

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On March 31st, according to the voting page, the Aave community\’s ARFC proposal for \”Deploying V3 MVP Version on the Polygon zkEVM Main Network\” (ARFC proposal is usually considere

Aave Communitys ARFC Proposal Receives 100% Support for Deploying V3 MVP Version on Polygon zkEVM Main Network

On March 31st, according to the voting page, the Aave community’s ARFC proposal for “Deploying V3 MVP Version on the Polygon zkEVM Main Network” (ARFC proposal is usually considered as a “temperature check”) received 100% support and will enter the formal online voting. The proposal points out that the deployment of Aave V3 requires less development effort, but in order to reduce risks, it is recommended to limit the inflow of assets and set conservative risk parameters to enable development and risk service providers to conduct a more in-depth analysis of the zkEVM network. The proposal proposes to add only three collateral (WETH, WMATIC, and USDC) and one loanable asset (USDC) to reduce risk.

The ARFC proposal of the Aave community on “Deploying V3 MVP Version on the Polygon zkEVM Main Network” has been voted through

Introduction

On March 31st, 2021, the Aave community’s ARFC proposal for “Deploying V3 MVP Version on the Polygon zkEVM Main Network” received 100% support and will now enter the formal online voting process. This proposal outlines the deployment of Aave V3 on the Polygon zkEVM network and recommends taking measures to limit risk.

Table of Contents

1. Introduction
2. Background information on Aave
3. What Is Polygon zkEVM?
4. Aave V3 MVP Version
5. The Proposal
6. Recommendations for Risk Management
7. Limitations on Collateral and Loanable Assets
8. Benefits of Deployment on Polygon zkEVM
9. Concerns and Criticisms
10. Online Voting
11. Conclusion
12. FAQs

Background information on Aave

Aave is a decentralized finance (DeFi) platform that enables users to borrow and lend cryptocurrency assets without intermediaries. It was founded in 2017 under the name ETHLend and was rebranded as Aave in 2018. Aave operates on the Ethereum blockchain and has become one of the largest DeFi platforms in terms of total value locked (TVL).

What Is Polygon zkEVM?

Polygon (formerly Matic) is a Layer 2 scaling solution for Ethereum that aims to improve its speed and lower its costs. One of its key features is the Polygon zkEVM, which is a layer that utilizes zero-knowledge proofs to enable smart contracts to execute off-chain while maintaining the security of the Ethereum network.

Aave V3 MVP Version

Aave V3 is the next version of the Aave protocol and is expected to introduce significant improvements over the current version. These improvements include a new user interface, more efficient use of collateral, collateral swap, and more.

The Proposal

The ARFC proposal submitted by the Aave community recommends deploying the Aave V3 MVP version on the Polygon zkEVM main network. The proposal notes that the deployment of Aave V3 on the Polygon network would require less development effort than on the Ethereum network.

Recommendations for Risk Management

The proposal recommends taking measures to limit risk during the deployment of Aave V3. These measures include limiting the inflow of assets and setting conservative risk parameters. This would enable development and risk service providers to conduct a more in-depth analysis of the zkEVM network.

Limitations on Collateral and Loanable Assets

The proposal suggests adding only three collateral types – WETH, WMATIC, and USDC – and one loanable asset, USDC to reduce risk. This is a conservative approach designed to limit risk while introducing Aave V3 on the Polygon network.

Benefits of Deployment on Polygon zkEVM

Deploying Aave V3 on the Polygon zkEVM network would allow for faster and cheaper transactions than the current version on Ethereum. This would improve the user experience and attract more users to the platform, leading to increased TVL and revenue.

Concerns and Criticisms

Some critics have raised concerns about the proposed limitations on collateral and loanable assets. They argue that limiting the assets would reduce liquidity and hinder the deployment of Aave V3 on Polygon. However, proponents of the proposal argue that the limitations are necessary to reduce risk and ensure a smooth deployment.

Online Voting

Following the successful ARFC proposal, the next step is formal online voting. Aave token holders will vote on whether to approve the proposal or not. If approved, the proposal will be implemented, and Aave V3 will be deployed on the Polygon zkEVM network.

Conclusion

The Aave community’s ARFC proposal for deploying Aave V3 MVP version on Polygon zkEVM main network has received 100% support and will now go through the formal online voting process. The proposal outlines measures to limit risk and proposes the addition of three collateral types and one loanable asset to reduce risk. If approved, deploying Aave V3 on the Polygon network would lead to faster and cheaper transactions, improving the user experience and attracting more users to the platform.

FAQs

1. What is Aave V3 MVP Version?
Aave V3 MVP version is the next version of the Aave protocol and is expected to introduce significant improvements over the current version. These improvements include a new user interface, more efficient use of collateral, collateral swap, and more.
2. What is Polygon zkEVM?
Polygon zkEVM is a layer that utilizes zero-knowledge proofs to enable smart contracts to execute off-chain while maintaining the security of the Ethereum network.
3. Why are there limitations on collateral and loanable assets in the proposal?
The limitations on collateral and loanable assets are necessary to reduce risk during the deployment of Aave V3 on the Polygon network. This would enable development and risk service providers to conduct a more in-depth analysis of the zkEVM network to ensure a smooth and safe deployment.
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