Neon Foundation proposes deployment of Aave V3 on Neon EVM

Fibo Quantum

  • A new proposal by Neon Foundation and Aave Chan Initiative outlines the deployment of Aave V3 on Neon EVM.
  • The proposal is at the initial stage of community consideration and will proceed to a governance vote if sentiment is positive.

The Neon Foundation is seeking feedback from the Aave community over its proposal to deploy Aave V3 on Neon EVM mainnet. The proposal, also supported by Aave Chan Initiative (ACI), outlines the benefits of bringing Aave’s lending services to the EVM-compatible smart contract platform.

Neon EVM is built on Solana and allows for the scaling of Ethereum dApps on Solana.

“Temp check” for Aave V3 expansion to Neon EVM

According to Neon, the proposal is a “temperature check”. If a snapshot assessment shows supportive sentiment from the Aave community, this will proceed to the next step as an Aave Improvement Proposal (AIP). 

From here, a governance vote and potential adoption will see Aave V3 expand to the Solana-based platform as a minimal viable product (MVP).

This proposal suggests deploying Aave V3 on Neon EVM Mainnet with limited deployment of initial assets and conservative risk parameters. This approach will enable Aave to strategically establish a presence in the Solana ecosystem while minimizing risk exposure,” the co-authors wrote.

Aave’s expansion to Neon EVM will enable access to an “unaddressed” group of users, add to network liquidity, and tap into Solana’s community and ecosystem.

Neon Foundation also notes that the integration could allow for further growth for the platform, including through capturing of share of the Solana DeFi ecosystem. This does not only have the potential to grow the network’s community and user base, but also increase its total value locked (TVL) and protocol revenue.

Neon highlights three collaterals in SOL, mSOL, jitoSOL. USDC is envisioned as a borrowable asset.

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