[TEMP CHECK] Aave V3 Deployment on TRON Network

Governance New Market
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Summary

This proposal aims to introduce the idea of deploying Aave V3 on the TRON Network, a rapidly growing and highly decentralized network that hosts a multitude of DApps and boasts a substantial user base, and seeks community input and discussion.

Motivation

As detailed below, the TRON ecosystem presents a compelling case for hosting Aave V3. TRON’s rapidly growing user base, decentralized architecture, and robust DApp ecosystem create a fertile ground for Aave’s expansion. By deploying Aave V3 on TRON, we can tap into a diverse user base, leverage TRON’s existing partnerships, and contribute to the growing DeFi landscape within the TRON ecosystem.

The deployment on TRON would allow Aave to capture a distinct segment of the DeFi market and contribute to the decentralized finance movement in a novel and impactful way. As TRON continues to gather momentum and solidify its position as a prominent blockchain platform, integrating Aave’s advanced lending and borrowing protocols could serve as a catalyst for the TRON DeFi ecosystem.

Background

TRON is a blockchain platform founded in September 2017, Since its inception in 2017, the TRON network has remained focused on two ideals: decentralization and empowerment. We enable the development of decentralized financial and social applications, and we empower developers and users alike to own this purpose with us. In December 2021, TRON became TRON DAO, a community-governed, decentralized, autonomous organization connected to a diverse and growing blockchain ecosystem. As of 15th of Aug 2023, TRON ranks 2nd place on Defillama with a total TVL of $5.352 billion.

Key Features of TRON

Massive User Base: With over 178 million users on the TRON blockchain and more than 6.2 billion transactions, TRON has achieved widespread adoption and engagement within a short span of time.

Stablecoin Dominance: TRON hosts the largest circulating supply of stablecoins globally, surpassing USDT on Ethereum. There are 44B USDT on TRON compared to 39B on Ethereum (Source: Transparency). This indicates TRON’s capacity to support diverse financial services.

Decentralization: TRON completed full decentralization in December 2021, transitioning into a community-governed DAO. This aligns with the principles of decentralization and autonomy that Aave promotes.

Partnerships and Ecosystem: TRON’s collaborations with various DApps, projects, and companies within the blockchain space demonstrate its commitment to fostering a robust ecosystem.

Potential Benefits for Aave

Deploying Aave V3 on TRON offers several advantages:

Diverse User Base: TRON’s large and growing user base provides Aave with access to a wide range of potential users eager to engage with DeFi protocols.

Partnership Opportunities: TRON’s network of partnerships and collaborations can be leveraged to foster integration and adoption of Aave V3. There are diverse types of assets on TRON Network, such as RWA asset stUSDT, TRON ecosystem assets such as TRX, BTT, NFT, WIN, SUN, USDD, USDJ, JST and so on.

Decentralization Synergy: Aave’s ethos of decentralization aligns with TRON’s transition into a community-governed DAO, enhancing the compatibility of the deployment.

Specification

Given the unique features of TRON and its vibrant ecosystem, the Aave V3 deployment on TRON would necessitate a careful assessment of risk parameters and integration specifics. A comprehensive analysis would be conducted to determine risk parameters, token compatibility, isolation modes, and liquidity considerations, among other factors.

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Oracle: WinkLink

Cross-chain Interactions: TRON has integrations with token bridges like BTTC Bridge

Disclaimer

The information about TRON provided in this proposal is sourced from public information available on the TRON website and other reliable sources.

Next Steps

Community Input: Gather feedback and gauge sentiment within the Aave community regarding the deployment of Aave V3 on the TRON Network.

Research and Analysis: Conduct an in-depth analysis of the technical and economic feasibility of the deployment, including risk assessment and compatibility evaluation.

Formal Proposal: If the community sentiment is positive and the feasibility analysis indicates potential, submit a formal proposal as per the Aave Improvement Proposal (AIP) process.

Conclusion

The Aave V3 Deployment on TRON proposal envisions a strategic collaboration between Aave and TRON to bring advanced lending and borrowing protocols to the TRON ecosystem. By embracing TRON’s decentralization and vibrant user base, Aave can make a substantial impact on the TRON DeFi landscape while expanding its own reach and utility.

For further information about the TRON ecosystem, please visit the official TRON website at https://tron.network/

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Hey @Vincent, thanks for submitting this proposal

However, the risk/reward ratio seems fairly low to me

With 4 protocols (all belonging to Justin Sun) accounting for 99.99% of the network TVL, I’m not sure TRON is a very good fit for AAVE

As a stkAAVE token holder defending the best interests of the AAVE DAO, I am firmly against this proposal

2 Likes
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Hello, thanks @Vincent for publishing this proposal.

please consider renaming this post to “[TEMP CHECK] Aave V3 Deployment on TRON Network” to follow TEMP CHECK framework : [ARFC] ARFC and TEMP CHECK Framework

On the proposal itself, TRON and TRX-USDT have an actual user base in territories & audiences quite far from Aave main area of influence and might be an opportunity for mutually beneficial synergies.

The recommended onboarded assets & parameters might benefit from fine-tuning at the potential ARFC stage by risk teams but are not particularly concerning.

this proposal will get ACI support at TEMP CHECK stage but we think there’s potential for discussions with service providers at ARFC stage.

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I have been lurking for a while and would like to share my opinion.

People need to understand that a decentralised blockchain does not belong to an individual.

From an independent perspective, the risk to AAVE from this integration with TRON Network is just the gas involved which is negligible with a small seed funding to kickstart pools and rewards. Service providers are already on payroll.

Risk is isolated to the chain and users’ risks are ring-fenced. Having such a narrow-minded view on things prevents AAVE from having more streams of revenue. AAVE has already expanded to more obscure chains than TRON which is kindly ironic.

If this goes to snapshot and vote, I will be supporting like how i have always supported integration to other chains.

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It’s not about being ‘narrow-minded,’ but rather about not deploying AAVE on a historically dubious blockchain where no legitimate DeFi project has been launched over the past 5 years

There’s an apparent reason why people other than Sun don’t build on TRON but I won’t talk politics on the forum

As you said, AAVE has already been integrated into “obscure chains” in the past, and it would be good to avoid making the same mistakes again

Anyway, I can’t wait to see how the discussion develops

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your reply has already embedded your political views and prejudices, times have changed, and saying you are not narrow-minded does not abolish you of that. You are indeed narrow-minded.

Curve is integrating with TRON, and AAVE can catch the early winds of more defi projects building only TRON. As you implied, AAVE will be a shining beacon on TRON.

Cheers

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Both @Tor_GAINS & @fumoffuXx, please refrain from this kind of low-added-value personal dispute in the governance forum. That is below the expected standard of the Aave DAO discussions.

Every opinion is welcomed, but not all ways to express them.

You both voiced your points and let’s leave room for the rest of the community to weigh in before a potential escalation to governance next stage.

Thanks for your understanding.

1 Like