Decentralized non-custodial liquidity protocol Aave V3 has officially launched on Celo, a Layer-2 platform designed to facilitate fast and cost-effective transactions for real-world applications. This integration allows Celo’s builders and users worldwide to engage in borrowing, lending, and earning yield with minimal transaction costs.
The move comes in conjunction with Celo’s upcoming migration to an Ethereum Layer 2 solution, promising one-block finality and one-second transaction times. Initially, the deployment on Celo supports assets such as CELO, USDT, USDC, cUSD, and cEUR, with the potential for additional assets including Celo’s native stablecoins in the future.
The decision to bring Aave to Celo was driven by the Aave community’s support for expanding the protocol’s reach to the mobile-first ecosystem that Celo represents. Isha Varshney, Head of Ecosystem at Celo Foundation, expressed enthusiasm for the collaboration, highlighting Celo’s mission to provide accessible financial tools globally.
Ethereum co-founder Vitalik Buterin also commended Celo’s growth and adoption, particularly noting its surpassing of Tron in daily active addresses due to stablecoin usage. Buterin emphasized the importance of improving global access to financial services, a goal that both Ethereum and Celo strive to achieve.
According to DeFiLlama, Celo currently boasts $72.02 million in total value locked in DeFi, with the CELO coin trading at $0.3445. Despite fluctuations in its price, the coin remains a valuable asset within the Celo ecosystem.
Aave Labs Founder Stani Kulechov sees the integration of Aave on Celo as an opportunity to introduce a new demographic to the Aave ecosystem, particularly mobile-first users in emerging markets. This collaboration aims to bridge real-world assets with DeFi and promote the use of stablecoins for everyday transactions.
The partnership between Aave and Celo has the potential to enhance liquidity, offer new yield opportunities, and drive DeFi adoption in emerging markets. Marek Olszewski, Celo co-founder and cLabs CEO, highlighted the alignment of Aave’s protocol with Celo’s mission of creating prosperity for all users.
In a separate development, Aave recently proposed updates to its tokenomics, focusing on staking rewards, revenue distribution, liquidity management, and the deprecation of LEND. With $17.486 billion in total value locked, Aave continues to be a leading player in the DeFi space.
As Aave V3 goes live on Celo, the collaboration between these two platforms signifies a step towards a more inclusive and sustainable digital economy. Both projects remain committed to expanding access to decentralized financial services and creating opportunities for users worldwide.