👻Aave: Upgrade Aave to v3 on Avalanche
Voting Recommendation by (Discord: Raho#0007)
Summary:
This proposal is to upgrade Aave V2 to Aave V3 on Avalanche C-Chain.
This proposal appears to be a strategic proposal for Aave. Aave launched V2 on Avalanche C-Chain in October of 2021 and has seen great success in terms of protocol growth. This integration was incentivized by the Avalanche Rush development grants program, which allocated AVAX for Aave users on the Avalanche blockchain. These incentives have allowed for Aave’s Avalanche market to grow at a rapid pace!
About Avalanche:
Avalanche is a Proof of Stake L1 blockchain that is made up of three separate chains. These chains include the: Exchange Chain (X-Chain), Platform Chain (P-Chain), and Contract Chain (C-Chain) - with each using a different consensus mechanism. In short, Avalanche’s mission is to become the most utilized smart contract platform in the blockchain ecosystem.
Rabbithole users are likely familiar with from completing the Avalanche tasks in Rabbithole recently! Avalanche
Avalanche aligns itself with a few of Rabbitholes core values, such as Minows>Whales by hosting a platform for all users to interact with decentralized smart contracts, in a cost-efficient way!
Highlights (Taken from Aave Governance Forum:
TVL: More than 5 billion dollars has been bridged from Ethereum on the Avalanche Bridge, with the total TVL on the Avalanche C-Chain surpassing 10 billion dollars, making it the 4th largest blockchain by TVL.
Decentralization: The Avalanche network remains as secure as ever and now counts more than 1,200 validators. Avalanche consensus allows it to easily scale to tens of thousands of validators.
Transaction volume: The Avalanche C-Chain routinely achieves more than 500k daily transactions, sometimes exceeding 1M daily transactions. This constitutes up to 80% of the daily transaction volume on Ethereum.
Development activity: There are more than 16,000 cumulative unique smart contract deployers on the C-Chain and hundreds of dapps live.
What will this proposal mean for Aave and Avalanche?
This proposal acts as an upgrade for the Aave platform which is already on the Avalanche blockchain. Put simply, this will mean that Aave V3 markets will be available to users on the Avalanche blockchain. As stated above, this will be a strategic move for Aave as - in theory - it brings additional users to the Aave platform, and will act as a step towards Aave’s multi-chain strategy. Additionally, Avalanche Rush will continue to provide incentives in order to make this transition.
Possible Technical Challenges: If passed, Aave will have two markets on the Avalanche blockchain (V2 & V3). This means that Aave users will need to migrate from V2 to V3 on Avalanche. The Aave foundation along Avalanche Rush will provide incentives in order to ensure that this migration happens in a safe manner.
Recommendation:
I recommend that the Rabbithole Metagovernance Pod vote 'Yes' to this proposal. I recommend this because Avalanche has common core values that align with our values at Rabbithole, such as Minnows>Whales. This core value of Rabbitholes stands for inclusivity of all users, despite the amount of money they bring to the table. We believe that all users should have access to decentralized smart contracts, which should be affordable for all users! With that in mind, Avalanche prides itself on being a cost-effective way to interact with blockchain! It appears to be a positive-sum upgrade, assuming that V2 to V3 can be safely achieved.
Aave Govrenance Forum: https://governance.aave.com/t/launch-aave-v3-on-avalanche/7045
Open Questions:
Feedback:
Execution Status: Not Executed (voting period ended over weekend)
Vote: Yes
Community vote
16 Y
0 N
Pod vote
27 Y
0 N
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