How Aave and Metis Can Boost the DeFi Economy on Layer 2

Aave, the leading DeFi lending protocol with over $8.5 billion in total value locked, has recently announced its deployment of v3 of its protocol on Metis Andromeda, an Ethereum Layer 2 network powered by Optimistic Rollup technology. This is a major milestone for both projects, as it opens up new possibilities and opportunities for DeFi users and developers on Layer 2.

What is Aave v3?

Aave v3 is the latest version of Aave’s protocol, which introduces several new features and improvements, such as:

• Isolated Markets: Users can create their own custom markets with different risk parameters and asset pools, allowing for more flexibility and innovation.
• Credit Delegation: Users can delegate their credit to other users or smart contracts, enabling new use cases such as undercollateralized loans, flash loans, and yield farming.
• Batch Flash Loans: Users can execute multiple flash loans in one transaction, reducing gas costs and increasing efficiency.
• Gas Tokenization: Users can tokenize their gas costs and trade them on secondary markets, creating a new asset class and hedging mechanism.

Aave v3 is designed to be compatible with multiple Layer 2 solutions, such as zkSync Era and Metis Andromeda, as well as other chains, such as Polygon and Avalanche. This allows Aave to expand its reach and offer its services to a wider and more diverse audience.

What is Metis Andromeda?

Metis Andromeda is an Ethereum Layer 2 network that leverages Optimistic Rollup technology to provide fast, cheap, and secure transactions. Metis Andromeda is fully compatible with Ethereum and supports EVM and Solidity, making it easy for developers to migrate their existing DApps or build new ones on Layer 2.

Metis Andromeda also offers some unique features and advantages, such as:

• Decentralized Autonomous Company (DAC) Framework: Users can create and manage their own decentralized businesses on-chain, with all the functionalities of real-world enterprises and all the security and decentralization of Ethereum.
• Builder Mining Program: Users can earn rewards for deploying and using DApps on Metis Andromeda, creating a positive feedback loop and a sustainable ecosystem.
• No-Code Integration: Users can integrate their DApps with Metis Andromeda without writing any code, using smart contract templates and middleware layers provided by Metis.

Metis Andromeda aims to be the hub for the entire Web3 economy, enabling both blockchain and Web2 companies to build and scale their decentralized applications on Layer 2.

How Aave and Metis Can Interact and Benefit Each Other

The deployment of Aave v3 on Metis Andromeda is a win-win situation for both projects, as it creates synergies and benefits for both ecosystems. Some of the possible outcomes are:

• More Liquidity and Users for Aave: Aave can tap into the growing user base and liquidity pool of Metis Andromeda, attracting more borrowers and lenders to its platform. Aave can also leverage the DAC framework and the builder mining program of Metis to incentivize and reward its users and developers.
• More DeFi Services and Innovation for Metis: Metis can offer its users and developers access to the industry-leading DeFi lending platform of Aave, enabling them to supply and borrow cryptocurrencies on Layer 2. Metis can also benefit from the isolated markets, credit delegation, batch flash loans, and gas tokenization features of Aave v3, creating new possibilities and use cases for its ecosystem.
• More Scalability and Efficiency for DeFi: Aave and Metis can work together to provide a scalable and efficient solution for DeFi on Layer 2, reducing gas costs, increasing transaction speed, and enhancing user experience. Aave and Metis can also collaborate to foster interoperability and innovation across different Layer 2 solutions and chains, creating a more diverse and vibrant DeFi economy.

How to Participate in the Aave-Metis Partnership

To celebrate and promote the deployment of Aave v3 on Metis Andromeda, Metis has launched an ambitious $5 million DeFi incentive program, known as the Metis Journey. The Metis Journey initiative kicks off with a significant allocation of tokens to Aave v3, one of the leading DeFi platforms in the Ethereum ecosystem. Metis has committed to allocating a staggering 100,000 tokens as a powerful incentive to encourage Aave users to participate in liquidity pools on the platform network. These liquidity pools encompass a range of assets, including ETH, METIS, USDC, USDT, and DAI.

To participate in the Metis Journey program and earn rewards, users need to follow these steps:

• Step 1: Connect your Metamask wallet to the Metis Andromeda network.
• Step 2: Transfer your assets from Ethereum Layer 1 to Metis Layer 2 using the Metis Bridge. Here
• Step 3: Visit the Aave v3 website and select Metis Andromeda as your network. You can find the website here
• Step 4: Supply or borrow any of the supported assets on Aave v3 and start earning interest and rewards.

The Metis Journey program is a limited-time offer, so don’t miss this opportunity to join the DeFi revolution on Layer 2.

For more information and updates, visit the Metis website here or follow them on [Twitter].