Aave, one of the leading decentralized finance (DeFi) protocols, has announced that it will be launching on Polygon’s zkEVM network. This move is expected to bring significant benefits to both Aave and Polygon, as it will enable faster and cheaper transactions for Aave users while also increasing the adoption of Polygon’s network.
Polygon is a Layer 2 scaling solution that aims to solve the scalability issues of the Ethereum network. It achieves this by using a combination of sidechains, Plasma chains, and now, zk-rollups. The zkEVM network is a new addition to Polygon that uses zero-knowledge proofs to enable faster and cheaper transactions.
Aave, on the other hand, is a DeFi protocol that allows users to lend and borrow cryptocurrencies without the need for intermediaries. It is currently one of the most popular DeFi protocols, with over $10 billion in total value locked (TVL) on its platform.
By launching on Polygon’s zkEVM network, Aave will be able to offer its users faster and cheaper transactions. This is because the zkEVM network uses zero-knowledge proofs to bundle multiple transactions into a single proof, which is then verified on the Ethereum network. This process significantly reduces the gas fees associated with each transaction, making it more affordable for users.
Moreover, by launching on Polygon’s network, Aave will be able to tap into Polygon’s growing user base. Polygon has been gaining traction in recent months, with several high-profile DeFi protocols launching on its network. This has led to a significant increase in the number of users on the network, which is expected to continue growing in the coming months.
The launch of Aave on Polygon’s zkEVM network is also expected to increase the adoption of zk-rollups in the DeFi space. Zk-rollups are a Layer 2 scaling solution that uses zero-knowledge proofs to bundle multiple transactions into a single proof. This process significantly reduces the gas fees associated with each transaction, making it more affordable for users.
In conclusion, the launch of Aave on Polygon’s zkEVM network is a significant development for both Aave and Polygon. It will enable faster and cheaper transactions for Aave users while also increasing the adoption of Polygon’s network. Moreover, it is expected to increase the adoption of zk-rollups in the DeFi space, which is a positive development for the entire ecosystem.
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- Source: Plato Data Intelligence: PlatoData