Deploy Aave on Cronos zkEVM Chain

Governance New Market
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Governance Proposal: Deploy Aave on Cronos zkEVM

Summary

This proposal seeks approval from the Aave DAO to deploy Aave on the Cronos zkEVM chain. By expanding Aave’s ecosystem to Cronos zkEVM, we can tap into a growing user base, benefit from low-cost and high-speed transactions, and enhance Aave’s multi-chain presence.

Motivation

  1. Expanding Aave’s Reach

Cronos is one of the leading blockchain ecosystems, backed by Crypto.com and widely adopted by retail and institutional users. Deploying Aave on Cronos zkEVM will:

  • Increase user adoption of Aave’s lending and borrowing services.
  • Provide new liquidity sources to the protocol.
  • Enhance interoperability with the Cronos ecosystem.
  1. Technical Benefits of Cronos zkEVM

Cronos zkEVM is a Layer 2 solution that offers:

  • Low Transaction Costs: zkEVM technology significantly reduces gas fees.
  • High Throughput: Faster transaction speeds with Ethereum-level security.
  • Scalability: Allows Aave to scale its services efficiently while maintaining security.
  • Ethereum Compatibility: Full EVM compatibility enables seamless deployment and integration.
  1. Security and Reliability
  • Cronos zkEVM leverages zero-knowledge proofs to ensure transaction validity and security.
  • It inherits Ethereum’s security model while providing a better user experience.
  • Backed by a strong developer ecosystem and active community.

Benefits to Aave

  1. New Revenue Streams: By entering the Cronos zkEVM ecosystem, Aave can generate additional protocol fees from a new wave of users.
  2. Cross-Chain Liquidity: Enhance Aave’s position as a leading DeFi protocol across multiple chains.
  3. First-Mover Advantage: Becoming one of the first lending protocols on Cronos zkEVM secures an early market advantage.
  4. DeFi Synergies: Collaboration opportunities with Cronos-based projects and dApps, leading to increased integrations and growth.
  5. Institutional Interest: Cronos has been gaining traction among institutions, providing more legitimacy and potential capital inflows to Aave.

Deployment Strategy

  • Deploy Aave v3 on Cronos zkEVM with an initial set of markets (e.g., USDC, ETH, CRO, WBTC, and other major assets).
  • Work closely with the Cronos team to ensure smooth deployment and ecosystem support.
  • Incentivize liquidity providers with strategic reward programs to bootstrap growth.

Conclusion

Deploying Aave on Cronos zkEVM aligns with Aave’s mission to become a dominant multi-chain liquidity protocol. This integration presents a strong opportunity to expand Aave’s ecosystem, drive additional adoption, and improve scalability and efficiency.

We invite the community to discuss, provide feedback, and support this initiative to bring Aave’s lending services to the Cronos zkEVM network.

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Hello thanks for your proposal,

feel free to follow [ARFC] New Chain Deployment Framework and edit your proposal to make it compliant.

This thread will be re-opened after proposal update.