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Aave DAO Passes Proposal to Deploy on Ethereum Layer 2 Metis Network
The move could bolster market liquidity for the burgeoning Metis ecosystem, community members say.
Updated May 9, 2023, 2:07 p.m. Published May 8, 2023, 7:58 a.m.
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Lending protocol Aave will deploy its version 3 (V3) on the Ethereum layer 2 ecosystem Metis Network following an overwhelmingly positive community vote that concluded over the weekend.
A community vote on Aave’s governance forum saw 100% of all voters signal support for the move. No voter was against the move.
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Aave’s deployment on Metis is said to increase market liquidity for both ecosystems while allowing Metis users to benefit from the borrowing and lending features of Aave, such as earning rewards for providing token liquidity to the platform.
Metis gained traction during the previous bull cycle for its capability to allow users to transact on Ethereum for cheap fees with faster transactions. It has since lost ground to networks such as Optimism and Arbitrum – which today hold billions of dollars worth of tokens and enjoy vibrant ecosystems, compared to just $40 million held on Metis.
Meanwhile, Metis is providing liquidity incentives to users to bolster network traction following the Aave V3 deployment.
The network will offer 100,000 native metis (METIS) tokens as a liquidity mining incentive for Aave users on the network that will be distributed over a six-month period. Elsewhere, a token mining reward program will distribute 4,000 METIS to participating protocols commensurate with the percentage of monthly transactions generated.
At the time of writing, Metis tokens were trading at $26, according to CoinGecko data.
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