[TEMP CHECK] Deploy Aave v3 on Mantle

Governance
1

[TEMP CHECK] Deploy Aave v3 on Mantle

Author: ACI

Date: 2024-12-20

Simple summary

The current [TEMP CHECK] proposes deploying Aave V3 on Mantle Network.

Motivation

Mantle Network is an EVM-compatible Layer 2 scaling solution for Ethereum (rollup), enabling existing Ethereum contracts and tools to operate with minimal modifications. By leveraging a modular architecture, Mantle combines an optimistic rollup design with innovative data availability solutions to reduce costs while maintaining Ethereum’s security. Data availability is managed by an external DA layer, currently powered by EigenDA technology through Mantle DA, with plans to fully adopt EigenDA upon its mainnet stable launch.

By deploying on Mantle, Aave can take advantage of Mantle’s integration with Bybit products, enabling seamless access to Bybit’s 30 million active users. This creates a significant opportunity to broaden Aave’s user base and make DeFi more accessible to a wider audience.

Mantle currently boasts a TVL of approximately $570 million, while its flagship LST (mETH) holds a TVL of $1.85 billion. More details here.

Benefits of deploying on Mantle

  • Accessibility and Distribution

    As Mantle is closely integrated with Bybit, Aave’s deployment on Mantle positions the protocol in front of an expanding audience.

    • This integration creates a gateway for tens of millions of potential new users to access Aave’s lending and borrowing products, making DeFi simpler and more accessible than ever before.

  • Incentive campaigns

    Mantle’s ongoing incentive program, Metamorphosis Season 2 offers a powerful catalyst for user engagement and liquidity growth within the ecosystem.

    • Restaking mETH into cmETH, participants earn Powder—soon to be convertible into COOK, the governance token of the mETH Protocol—and gain exposure to multiple streams of yield from staking, restaking, and additional protocol rewards. cmETH also accruing value through EigenLayer, Karak, Symbiotic and Veda points.

Proof of Liquidity (POL) and Deposit Commitments

The Mantle team will provide the following, upon its deployment is confirmed:

  • 16M units of MNT value at around 19.2M USD valuing MNT at $1.20 ea
  • COOK points and Ethena Sats
  • $20M in USDC/USDT Supply
  • $20M in ETH Supply
  • $50M in other asset supply

More details will be shared on ARFC stage.

Specification

Risk Parameters will be provided by Service Providers and this section will be updated at ARFC stage if proposal moves forward, after successful TEMP CHECK Snapshot.

Disclaimer

This proposal is powered by Skywards. The ACI is not directly affiliated with Mantle and did not receive any compensation for creating this proposal.

Next Steps

  1. If consensus is reached on this [TEMP CHECK], escalate this proposal to the Snapshot stage.
  2. If the Snapshot outcome is YAE, this proposal will be escalated to ARFC stage.
  3. Publication of a standard ARFC, collect community & service providers feedback before escalating proposal to ARFC snapshot stage.
  4. If the ARFC snapshot outcome is YAE, publish an AIP vote for final confirmation and enforcement of the proposal.

Copyright

Copyright and related rights waived via CC0.

7 Likes
2

I haven’t interacted that much with Mantle to say anything meaningful.
But considering the liquidity commitments and the user base from Bybit this seems like an interesting deployment with great chances for Aave.

5 Likes
3

I am taking here a strong stance against AAVE coming to Mantle. There is many reasons for why AAVE should not come to Mantle, but it all boils down to the fact that AAVE Mantle would just destroy the current dynamics, alignments and uniquely evolving culture of Mantle.

Mantle has a unique approach to rolling out its broader vision. I cannot see any scenario in which AAVE would fit well in it. Mantle is an ecosystem which prioritised chain-native & ecosystem-aligned protocols over multi-chain copypasta, which is highly reflected in its culture and values.

AAVE would never be able to satisfy this, as it would just be yet another chain AAVE deploys to with no ecosystem specifc efforts to be taken. Beyond the fact, there is no demand for new lending markets on Mantle.

AAVE would be overall only a net-negative to the ecosystem, that just fragments liquidity amongst current players on Mantle, while neither being chain-native.

For the sake of Mantle, I hope you don’t deploy on Mantle!

3 Likes
4

As a burgeoning onchain financial ecosystem, Mantle caters to various types of DeFi users, from retail to institutions and large capital.

Aave’s deployment will provide a strong pathway for a new userbase that is accustomed towards its presence in other ecosystems towards our own native assets and defi applications, and conversely, allow for more synergistic growth for Aave with a defi native userbase and assets

Looking forward to this.

1 Like
5

As a core contributor at Mantle, I support this proposal as I believe Aave will be the perfect entry point for new capital to enter Mantle’s DeFi ecosystem and provide mutual growth to all ecosystem protocols and participants.

Being a highly-regarded industry leader in the space, I believe Aave will provide friendly capital with a familiar ‘household’ name, oftentimes associated with safety and security.

With our aims to create a thriving financial hub for all, having Aave on Mantle is an essential piece to the puzzle of mainstream adoption.

4 Likes
6

The current proposal has been escalated to TEMP CHECK Snapshot.

Vote will start tomorrow, we encourage everyone to participate.

2 Likes
7

After Snapshot monitoring, the current TEMP CHECK Snapshot ended recently, reaching both Quorum and YAE as winning option, with 820K votes.

Therefore [TEMP CHECK] Deploy Aave v3 on Mantle has PASSED.

Next step will be the publication of an ARFC to continue gathering interest from both Community and Service Providers.