Sonic, Formerly Fantom, Passes First Stage of Launching Aave v3 Lending Protocol on Its Blockchain

Aave Chain, a major delegate at the AaveDAO, submitted the proposal, which will proceed to the Aave Request for Comment stage

DeFi lending protocol Aave is preparing to launch its third-generation lending protocol on the newly launched Sonic layer-1 blockchain, following an initial stage of approval.

An on-chain temperature check to assess community support for integrating Aave, the largest decentralized finance lending protocol, concluded with a quorum on Dec. 27, according to a snapshot vote.

The proposal, submitted by Aave Chain, will now proceed to the Aave Request for Comment stage, where feedback will be gathered from governance members and service providers.

If the ARFC is approved, it will unlock a final Aave Improvement Proposal (AIP) vote to approve shipping Aave v3 on the new L1 network.

Sonic, formerly known as Fantom, 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_

? https://t.co/qR6v7QAFJ5 pic.twitter.com/i9MI1w2h26

Aave dominates the DeFi lending market with over $xyz billion in total value locked, according to data from DefiLlama. Launching on the L1 would allow Sonic users to tap into on-chain native credit lines and offer liquidity to other investors.

Sonic’s rebrand from its Fantom era may have smoothened the path for the deployment. The team, which includes veteran builders such as Andre Cronje, previously grew Fantom to a “peak TVL of circa $14.5 billion in 2021.”

The new L1 has also built its blockchain to execute 10,000 transactions per second, with a fee monetization model to attract Web3 developers.

Meanwhile, Aave is considering pulling its lending markets from Polygon after the DeFi lender took issue with a Polygon proposal that would expose Aave-native collateral to bad debt.

Polygon co-founder Sandeep Nailwal accused Aave of bullying the ecosystem and using anti-competitive tactics, while Stani Kulechov, Aave’s founder and CEO, refuted the claims and stressed the decision was to protect user security.