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Aave Expresses Interest In Coinbase’s Base Network

Aave Expresses Interest In Coinbase’s Base Network

The Aave community is mulling over a proposal to launch its V3 on the Coinbase-backed Layer-2 blockchain solution, Base network. 

Aave V3 Considers Base Deployment

The upcoming Base network is a Layer-2 blockchain solution backed by the Coinbase crypto firm and is currently going through a temperature check phase by the Aave community. As per early reports, it is being considered by Aave for the deployment of its V3. 

The idea was first proposed by analytics firm Flipside Crypto and then brought to the attention of Aave’s governance forum by Flipside’s protocol specialist Francis Gowen, who is also one of the delegates and contributors of Aave. In his proposal, Gowen highlighted that the integration could result in multiple revenue streams for Aave V3 and open it up to a significantly larger user base. 

Other than suggesting the protocol, Gowen also touched upon the necessity of maintaining risk parameters for assets that would be deployed on Base.

Temperature Check Ongoing

The presently ongoing temperature check phase will allow the community members to experience the platform and provide initial feedback, based on which the next step of the decision might be taken. If the initial feedback is positive and garners sufficient preliminary votes, the proposal will be considered for further discussion. These discussions will include risk parameter evaluations, which, if successful, will advance the proposal to an on-chain vote as a final step before deployment. 

Base Mainnet To Launch After Optimism Upgrade

The Base network project has so far only launched its testnet, which already displayed significant developer activity. The network has been supporting 18,000 developers who deployed 55,000 smart contracts. This indicates a strong growth potential for the mainnet once it is launched later this year. 

Although the Base team has yet to finalize a launch date for its mainnet, it has been announced that the project has completed its first hardfork, Regolith, in testnet. Furthermore, the OP Labs team has also completed a project infrastructure review. 

The team has also explained that once Optimism completes its June upgrade (Bedrock), Base will be able to move on to its internal and external audits stage to demonstrate testnet stability and then launch the mainnet. 

Other Interest In Base Network

Aave is a decentralized and non-custodial liquidity market protocol that allows users to lend, borrow, and generate interest on multiple crypto assets, including stablecoins. The upcoming Aave V3 will be the third major iteration of the protocol and, if the above proposal is greenlit, could have a significant impact on the Base network. 

However, Aave is not the only crypto powerhouse considering a move to Base. A week back, the largest decentralized exchange, Uniswap, also revealed that it is considering an expansion to the Base network. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.