Aave-Chan initiates proposal to deploy Aave v3 on Sonic

Aave DAO delegate and service provider Aave Chan Initiative has initiated a proposal on the crypto lender’s governance forum to deploy Aave v3 on Sonic.

Sonic Labs announced the mainnet launch of its layer-1 Ethereum Virtual Machine-compatible blockchain Sonic on Dec. 18. The new governance proposal seeks community support that would allow the integration of Aave (AAVE) v3, currently with a total value locked of over $22 billion, to the new L1 blockchain.

“This Temp Check seeks the community’s input on the deployment of Aave V3 on Sonic Mainnet,” proposal’s author ACI noted.

The Sonic Foundation has committed to providing $15 million funding, migration incentives, up to 50 million native Sonic tokens S and 20 million USDC supply.

Following the temp check, consensus will take the proposal to a snapshot stage, then Aave Request for Comment and Aave Improvement Proposal. The ARFC and AIP stages lead to a vote that will see final confirmation and deployment.

Sonic’s mainnet launch brings the native token S, faster finality and a fee monetization feature. Aave-Chan notes in the proposal that this feature could be a great source of additional income for Aave.

“Given the impressive history of the team building Sonic, and the innovations it promises, it represents a strong candidate for deployment of Aave V3. In addition, the fee monetization for apps has potential to be an additional income source for Aave,” the proposal states in part.

With Sonic live, Fantom (FTM) token holders can upgrade their FTM to S 1:1. The Sonic Labs team applied a points system to the L1 network’s airdrop, with about 190.5 million S tokens available to eligible community members. FTM traded around $1.16 at the time of writing.