Blockchain News

Aave V3 switches to the ZeroKnowledge protocol

Aave is a Decentralized Finance (DeFi) lending and borrowing system, and Stani Kulechov, the company’s founder and CEO, just revealed a new direction for the protocol.

On his Twitter page, he declared that the group has submitted a proposal that called for the implementation of Aave v3 on zkSync 2.0. According to the idea, the deployment would begin on the testnet and then be moved to the mainnet.

How does Aave fit into zkSync 2.0

The goal of a zero-knowledge rollup, also known as zkSync 2.0, is to reduce Ethereum’s high fees and increase the network’s transaction throughput.

Despite being substantially more challenging for engineers to implement, Zero Knowledge rollups like zkSync are regarded to be better than so-called Optimistic rollups.

The Aave team believes that by launching on zkSync early, Aave’s position as the leading liquidity market and thought leader will be enhanced.

The protocol gains even more value by being offered on a ZK rollup that is compatible with the Ethereum Virtual Machine (EVM).

Deploying on zkSync could also help Aave’s capacity to draw new users and increase user activity because Aave can interact with hundreds of projects. This can be accomplished for less money than Ethereum without compromising security.


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