Aave has recently made a significant expansion by launching its version 3 network on the Sonic mainnet. This move comes following a governance proposal aimed at bringing the decentralized finance protocol’s lending market to the network, formerly known as Fantom.
The deployment of Aave v3 on the Sonic network was managed by Web3 platform and Aave contributor bgdlabs, with risk assessment conducted by Chaos Labs and LlamaRisk. Chainlink, an on-chain finance and oracle platform, provides price feeds for the network.
Sonic Labs introduced its layer-1 mainnet in December 2024, coinciding with the governance proposal by Aave DAO delegate Aave Chan to bring v3 to Sonic. The proposal was subsequently approved by the AAVE community, leading to the successful deployment of the protocol on the network.
This expansion to the Sonic network marks Aave’s first move of the year, further solidifying its presence in the decentralized finance ecosystem. Users on the Sonic network can now participate in borrowing and lending activities through Aave, earning DeFi-related incentives in the process.
To incentivize early adopters, Aave and Sonic Labs are offering $15 million in S tokens and $800,000 in AAVE tokens. Supported assets for borrowing and lending include USDC, WETH, and wS.
The decision to deploy v3 on Sonic was driven by the impressive track record of the Sonic team and the potential for fee monetization for applications using the network. Sonic Labs co-founder Andre Cronje highlighted Sonic as the only chain where users are paid for the activity they generate.
With a total value locked of over $18.7 billion, Aave has established itself as a leading protocol in the DeFi space. Since its inception on Ethereum in 2018, Aave has expanded to multiple networks, including Polygon, Arbitrum, Optimism, Base, BNB Chain, Avalanche, and Gnosis Chain.
The deployment of Aave v3 on the Sonic network represents a strategic move to tap into new opportunities and further enhance the protocol’s reach in the decentralized finance landscape.