AAVE V3 Deployment on Ethereum Layer 2 METIS Network

Lending protocol Aave will launch version 3 (V3) on the Ethereum layer2 ecosystem Metis Network, following a highly positive community vote that ended over the weekend. A community vote on Aave’s governing forum found that 100% of all voters signaled support for the movement. None of the voters opposed the movement.

The launch of Aave on Metis is said to increase market liquidity for both ecosystems and will allow Metis users to take advantage of certain borrowing and lending features of Aave, such as the award-winning feature for providing token liquidity to the platform. Metis gained traction during the previous bull run for its ability to allow users to transact on Ethereum for cheaper fees with faster transactions. With only $40 million in assets in Metis since then, it has lagged behind networks like Optimism and Arbitrum, which today hold billions of dollars worth of tokens and enjoy vibrant ecosystems.

Meanwhile, Metis provides users with liquidity incentives to support the network after Aave V3 deployment. The network will offer 100,000 native metis (METIS) tokens as a liquidity mining incentive for Aave users on the network, which will be distributed over a six-month period. On the other hand, a token mining reward program will distribute 4,000 METIS to participating protocols in proportion to the percentage of monthly transactions generated.