Collaboration with Loopring Protocol

Hello Aavengers,
I’d like to know what the Aave team and the community at large thinks about a potential integration of Aave within the Loopring wallet/protocol. I think anyone who pays any attention to the larger crypto space understands that L2 is crucial for the tide of upcoming users. I’ve been looking at the various L2 solutions out there with a focus on high standards of UX, TX performance and most importantly Security.

It was interesting to follow discussions about Optimistic Rollups, Plasma, Sidechains (xDai) and ZK Rollups in particular. By now I have no doubt that ZK Rollups scaling offers the highest security guarantees of all while enabling very cheap transactions. and that is a very powerful advantage in my view, as the importance of security and withdrawal guarantees to L1 cannot be underestimated.

At the same time I analyzed my behavior as a user of DeFi and I realized that I, and many others, need an all-inclusive solution starting with an L2 native wallet. Such a wallet must have native support for trading (order books and AMM), cheap transactions and integration with Money Markets and lending services (Aave/Compound/Maker). Argent for example has a lot to offer in this sense, but it lacks the main cornerstone - it is not L2 native. On the other hand the upcoming wallet from Loopring incorporates pretty much everything I’ve mentioned above, except for Money Markets/Lending services by default. Thus, I foresee a possibility for a very interesting linkage between Aave and Loopring, so that I and millions of other users can have a complete DeFi L2 dashboard at our fingertips. This is something we thoroughly need for sustainable mass adoption and Loopring can deliver.

Another point to be emphasized is the recent investment received by the Aave team of about 25 mln USD. Stani commented that among other things the funds would be used to help Aave team better serve the Asian markets. Loopring has been foremost focused on the Asian markets especially Chinese speaking users. This partnership could further benefit Aave in this sense.

Looking forward to your feedback regarding this topic.

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