Aave DAO Passes Proposal to Deploy on Ethereum Layer 2 Metis Network

Aave DAO Passes Proposal to Deploy on Ethereum Layer 2 Metis Network

Following an overwhelmingly positive community vote on Aave’s governance forum, lending protocol Aave will deploy its version 3 (V3) on the Metis Network, which is part of the Ethereum layer 2 ecosystem. All voters signaled support for the move, with no opposition.

This deployment is expected to boost market liquidity for both ecosystems and enable Metis users to access Aave’s borrowing and lending features and earn rewards for providing token liquidity.

Metis Network gained popularity during the previous bull cycle due to its ability to facilitate cheap and faster transactions on Ethereum. However, it has since lost ground to other networks like Optimism and Arbitrum that hold billions of dollars worth of tokens and have more vibrant ecosystems, unlike Metis, which currently holds just $40 million.

In response to Aave V3’s deployment, Metis is providing liquidity incentives to users to enhance network traction. The network will offer 100,000 native metis (METIS) tokens as a liquidity mining incentive for Aave users on the network over a six-month period.

Additionally, a token mining reward program will distribute 4,000 METIS to participating protocols in proportion to the percentage of monthly transactions generated.

About Aave DAO

AAVE DAO is an entity managed by the community that oversees the development and management of the Aave protocol. This organization is built on the Ethereum blockchain and enables Aave token holders to participate in the governance of the protocol.

The AAVE DAO provides Aave users and token holders with the opportunity to influence significant protocol decisions such as changes to the platform’s fee structure, token economics, and other governance-related matters. It utilizes a token-based voting system where each token holder can vote on proposals according to the number of tokens they possess.

The primary goal of AAVE DAO is to ensure the Aave platform’s stability and long-term success. It intends to create a community-driven ecosystem where all participants can have a say and work collaboratively to advance the protocol’s interests.

The Aave Governance Committee, a group of elected representatives, governs the DAO, and their responsibilities include submitting proposals and ensuring the protocol’s smooth operation.

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