Sonic Launches Aave v3 Integration

Sonic, formerly known as Fantom, has successfully completed the initial phase for launching Aave’s third-generation lending protocol on its blockchain.

An on-chain temperature check to advance the Aave v3 deployment on the newly launched Sonic layer-1 network achieved a quorum on December 27, based on a snapshot vote. This assessment aimed to gauge community support for integrating Aave, the largest decentralized finance lending protocol, with Sonic’s blockchain.

Aave Chain, a key delegate within the AaveDAO, submitted the proposal, which will advance to the Aave Request for Comment (ARFC) stage, inviting feedback from governance members and service providers.

A successful ARFC would allow for a final Aave Improvement Proposal (AIP) vote, which is necessary for implementing Aave v3 on this new layer-1 network.

> Sonic has officially passed the @Aave Temp Check ✅
> This marks the first step toward Aave’s integration with Sonic.
> Thank you for the support!
> • @AaveChan
> • @Token_Logic
> • @lemiscate
> • @StaniKulechov
> • @Matthew_Graham_
> — Sonic Labs (@SonicLabs) December 27, 2024

Context

Aave currently dominates the DeFi lending ecosystem, holding $xyz billion in total value locked as per DefiLlama data. Integrating on the L1 will enable Sonic users to access on-chain native credit lines and provide liquidity to other investors.

The rebranding from Fantom to Sonic may facilitate this deployment process. The Sonic team, including seasoned developers like Andre Cronje, previously led Fantom to a peak total value locked of around $14.5 billion in 2021.

Sonic’s new layer-1 blockchain was designed to handle 10,000 transactions per second and incorporates a fee monetization strategy to attract web3 developers.

While Aave considered expanding its protocol, it is likely to withdraw its lending markets from Polygon, citing concerns with a proposal that would risk exposing Aave-native collateral to bad debt. In a public dispute, Polygon co-founder Sandeep Nailwal accused Aave of bullying tactics within the ecosystem, a claim Aave’s founder Stani Kulechov strongly denied, asserting the choice was to safeguard user security.

Additional Information

For further details, Binance announced a timeline for the token swap and rebranding from Fantom to Sonic.