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Aave to proceed with $63m expansion to Sonic following positive temp check vote

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Aave to proceed with $63m expansion to Sonic following positive temp check vote

Aave’s governance is now weighing an ARFC proposal to bring V3 to Sonic, backed by a $63 million liquidity commitment.

Aave (AAVE) could be heading to Sonic, an EVM-compatible blockchain network from the creators of Fantom, if a fresh governance proposal gains support. Submitted by the Aave Chan Initiative on Jan. 31, the Aave Request for Comment #8d417 points to Sonic’s high transaction speed and fee-sharing model as key incentives for deployment.

If approved by Feb. 4, the move would come with a $63 million liquidity commitment, including a $15 million funding pledge from the Sonic Foundation, $20 million in Circle’s USD Coin (USDC), and up to 50 million $S tokens (around $27.15 million). Aave would also contribute $800,000 in stablecoins.

You might also like: Sonic founder claims SEC bullying forced him to leave crypto

“Aave has deployed on multiple promising new L1 and L2 EVM networks and is often one of the largest protocols on these networks. Given the impressive history of the team building Sonic, and the innovations it promises, it represents a strong candidate for deployment of Aave V3.”

ACI

The governance process is in its next stage, with an ARFC vote currently open. Back in December, the Aave community approved the initial temp check to expand into Sonic. If this new proposal passes, it will lead to a more detailed risk assessment before a final vote.

Read more: Sonic adopts Chainlink standard for cross-chain interoperability

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