Aave DAO Passes Proposal to Deploy on Ethereum Layer 2 Metis Network

The move could bolster market liquidity for the burgeoning Metis ecosystem, community members say.

AccessTimeIconMay 8, 2023 at 7:58 a.m. UTC
Updated May 9, 2023 at 2:07 p.m. UTC

Lending protocol Aave will deploy its version 3 (V3) on the Ethereum layer 2 ecosystem Metis Network following an overwhelmingly positive community vote that concluded over the weekend.

A community vote on Aave’s governance forum saw 100% of all voters signal support for the move. No voter was against the move.

Aave’s deployment on Metis is said to increase market liquidity for both ecosystems while allowing Metis users to benefit from the borrowing and lending features of Aave, such as earning rewards for providing token liquidity to the platform.

Metis gained traction during the previous bull cycle for its capability to allow users to transact on Ethereum for cheap fees with faster transactions. It has since lost ground to networks such as Optimism and Arbitrum – which today hold billions of dollars worth of tokens and enjoy vibrant ecosystems, compared to just $40 million held on Metis.

Meanwhile, Metis is providing liquidity incentives to users to bolster network traction following the Aave V3 deployment.

The network will offer 100,000 native metis (METIS) tokens as a liquidity mining incentive for Aave users on the network that will be distributed over a six-month period. Elsewhere, a token mining reward program will distribute 4,000 METIS to participating protocols commensurate with the percentage of monthly transactions generated.

At the time of writing, Metis tokens were trading at $26, according to CoinGecko data.

Edited by Parikshit Mishra.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Shaurya Malwa

Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.