Aave to Launch Own Blockchain After V4 Upgrade

Aave is looking to launch its own blockchain, dubbed Aave Network, after its forthcoming V4 upgrade. Given the lending protocol’s $13 billion in total value locked (TVL), the proposed network could potentially become one of the largest Layer 2 solutions in DeFi.

On May 1, Aave unveiled its V4 iteration featuring a unified cross-chain liquidity layer and liquidity premiums.

Yesterday, following speculation from Aave DAO members on social media, Aave CEO Stani Kulechov posted, “This is not a drill, Aave Network is planned to come after V4.”

When questioned on the timeline for V4, Kulechov continued, posting, “Next year for sure.” While there is little information publicly available on the potential Aave Network, it is presumed that the network will be secured by Ethereum and act as a hub for both Aave Protocol and its native stablecoin, GHO.

The Aave community was excited by the news, with figures such as Marc Zeller, founder of the Aave-Chan Initiative (ACI), saying, “It would also be the 3rd largest “chain” after Ethereum and Tron.”

Aave’s TVL has increased by 21% over the last month. Meanwhile, its AAVE governance token is up 9% on the week, outperforming other established DeFi protocols such as Lido and Maker.