Aave Expands Lending Markets on Sonic

Aave has launched its lending markets on Sonic, a high-performance blockchain that evolved from Fantom. This marks Aave’s first Layer 1 expansion of the year, furthering its efforts to diversify across blockchains. The deployment of Aave version 3 on Sonic follows a governance vote from a member and delegate of the Aave Chan Initiative approving this proposal.

According to Aave, Sonic’s monetization model enables decentralized protocols like Aave to earn a share of the transaction fees generated from user activity, potentially creating an additional income source for Aave.

This expansion comes after Aave governance decided to cease lending operations on the Polygon PoS chain due to perceived risks associated with Polygon’s pre-PIP proposal regarding rehypothecating stablecoins via its native bridge. Although Polygon did not proceed with the pre-PIP and officially rejected it, Aave contributors upheld their stance to halt operations on the chain.

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