This Temp Check seeks the community’s input on the deployment of Aave V3 on Sonic Mainnet.
Background:
Sonic is a new Layer 1 EVM blockchain offering 10,000 TPS and fee monetization for app builders. It is the newest blockchain from the creators of Fantom which reached a peak TVL of circa $14.5 billion in 2021.
Motivation
Aave has deployed on multiple promising new L1 and L2 EVM networks and is often one of the largest protocols on these networks. 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.
Proof of Liquidity (POL) and Deposit Commitments:
The Sonic Foundation will provide the following, upon its deployment is confirmed:
15M USD Funding from Sonic
2M migration incentives with 1.8M (of 15M funding) from Sonic + 0.8M from Aave
Up to 50M $S tokens Supply
20M of USDC 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 Sonic and did not receive any compensation for creating this proposal.
Next Steps
If consensus is reached on this [TEMP CHECK], escalate this proposal to the Snapshot stage.
If the Snapshot outcome is YAE, this proposal will be escalated to ARFC stage.
Publication of a standard ARFC, collect community & service providers feedback before escalating proposal to ARFC snapshot stage.
If the ARFC snapshot outcome is YAE, publish an AIP vote for final confirmation and enforcement of the proposal.
Sonic, building off of Fantom provides a strong foundation for rapid growth. The 10,000 TPS throughput ensures scalability, and the proposed funding of $15M plus $2M in migration incentives from both Sonic and Aave signal a significant long-term commitment. Combined with the additional income possibilities through fee monetization, deploying Aave V3 on Sonic could strategically position Aave to capture value early in a promising new ecosystem.
The 90% FeeM of Sonic opens up many possibilities.
APRs and User incentives can be higher for user which attracts more Liquidity therefor making it a Win-Win for AAVE and Sonic.
For such a massive project, which had their troubles and setbacks, it is estonishing what they have accomplished with their vision of sonic. This tech is absolutely incredible and in comparison with others the most scalable by far. I would love to see them collaborating with visionaries like aave. An unbelievable milestone if that happens. Best wishes!
While I appreciate the enthusiasm by the Sonic community, I would still like to keep this TEMP CHECK clear from “support spam”.
Now my opinion, the Fantom market hasn’t been much of a success for Aave in the past. We were lucky that we left before the Multichain hack happened.
With Sonic there seems to be a substantial upgrade compared to Fantom with a lot features and integrations.
The incentives Sonic is offering are very generous and seem like a perfect strategy to compete with other chains to capture a great amount of TVL. That being said I do think its worth it considering a deployment on this new chain.
It will be interesting to see its growth given that the chain basically just launched a couple hours ago.
The DAO should be cautious with risk parameter and asset selection.
At this point in time broadly in favour to progress toward an ARFC where I’d like to know more about; Incentive Allocation: How will the allocated funds and tokens be distributed to maximize their effectiveness in promoting growth between Sonic/Aave. @TokenLogicGHO Integration Feasibility: Are AAVE looking at GHO integration for new deployments? (just curious)
Echoing @EzR3aL point previous FTM integration with AAVE wasn’t a success so will be interesting to see how many DAPP’s and FTM migrate to SONIC over the coming days/weeks & a revised/updated TVL at ARFC stage.
Still a great achievement by the FTM/SONIC team & hopefully a successful mutually beneficial relationship between AAVE & SONIC beckons.
Easy support this will be huge. I don’t think people realize the changes that were made to Sonic, and the security measure, built in bridge is about to go live as Andre releases any day now. Support this to the next step.
I do think economic activity on Sonic will be significant in the long term so for Aave to have presence there is beneficial to the DAO. Aave can easily become the leading lending platform on the network and I expect will be see a large amount of use via BeethovenX (Sonic/FTM leading dex) once they launch the Balancer v3 tech stack to rehypothecate their underling pool assets into Aave.