Aave community mulls proposal to expand to Neon EVM on Solana

The governing body of the Aaf AAVE

-1.95%
the lending protocol assesses a proposal to use version 3 Neon EVM – a smart contract platform that enables Ethereum dApps on the Solana SOL

-5.40%
network.

This proposal, created by the Neon Foundation and Aave contributor Aave Chan Initiative, initially aims to extend Aave’s lending services to the Solana blockchain as a minimum viable product (MVP). It is currently in the “temperature check” phase – where members of the Aave community can share their thoughts and feedback on the proposed integration.

The proposal recommends the limited introduction of assets and the adoption of conservative risk parameters. Specifically, three types of collateral are mentioned – SOL, mSOL, jitoSOL – and a single loanable asset, USDC.

If approved, the stake would allow Aave to use Solana’s liquidity for its lending services. According to the proposal, a version of Aave v3 has already been deployed on Neon EVM’s developer-facing testnet (devnet).

If the proposal receives enough preliminary support, it will move on to the next stage, followed by an up-chain vote to finalize the decision.

Aave v3 is the third major version of the Aave protocol, a decentralized and non-custodial liquidity market protocol that allows users to lend and borrow various crypto assets.

More than $5 billion is locked into Aave v3 lending pools across 10 blockchains – the majority of which, $4 billion, are on Ethereum.