MetisDAO Bolsters Ethereum DeFi Ecosystem with Integration of Aave Protocol V3 on Layer 2 Network | Blockster

MetisDAO Foundation, a Canadian organization that is dedicated to building a robust and decentralized layer 2 infrastructure for Web3 enterprises, has announced the deployment of Aave Protocol V3 on the Metis Layer 2 network. The deployment of Aave V3 is expected to unlock new on-chain liquidity and DeFi capabilities for users across Aave and Metis. The integration will bring enhanced capital efficiency, valuable new security, and risk mitigation features to the Metis ecosystem.

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The Aave Protocol is widely recognized as an industry-leading DeFi liquidity protocol with $ 5.5 billion in total value locked (TVL). The deployment of the Aave Protocol on Metis will bring users of the Layer 2 network an established platform to supply and borrow cryptocurrencies.

DeFi users will be able to take advantage of the combined benefits of Metis' network speed and security, and the Aave Protocol's industry-leading features.

The Metis Layer 2 network is a first-of-its-kind, scaling, and user-friendly platform built to scale Ethereum and facilitate infrastructure development. When using Metis, users can rest assured that their transactions are being secured by Ethereum mainnet while uniquely inheriting the underlying benefits of Ethereum.

Builders and users are truly interacting with and secured by Ethereum mainnet.
According to research, the total number of DeFi users increased by 35% from January 2022 to January 2023, growing to 6.7 million users.
The recent successful implementation of the Shapella upgrade on the Ethereum network has fueled further optimism in the future of DeFi. Recent studies predict that the global DeFi market will surpass $232 billion USD by 2030.

As sentiment grows and more users explore the potential of DeFi, it's critical that they are able to participate in DeFi across platforms, with consistent speed, security, risk mitigation, and industry-leading features.

By integrating the Aave V3 protocol for Metis markets, DeFi users will be able to take advantage of several features that can benefit the Metis ecosystem.

These features include High-Efficiency mode for borrowing with less collateral, Supply and Borrow Caps for risk management, Siloed Borrowing for reducing contagion risks, Isolation Mode for increasing the pool of collateral assets, Cross-Chain Portals for accessing a wider range of DeFi solutions, Gas Optimization for reducing transaction fees, Modular Risk Controls for adjusting risk parameters, and DeFi Plug-and-Play for simplified integration with Aave V3.
“The integration of Aave Protocol V3 brings enhanced capital efficiency with valuable new security & risk mitigation features,” says Metis co-founder, Kevin Liu.
“We’re excited to see the expansion of Metis Layer 2’s DeFi offerings for the Web3 Economy.”

The Metis Layer 2 is just the core component of the Metis Stack, followed by the Reputation Power System, and the Decentralized Autonomous Company (DAC) Framework. The Metis Stack will provide the ideal environment for infrastructure development, day-to-day businesses, and other forms of open collaboration to take place.

Final Thoughts

The deployment of Aave Protocol V3 on the Metis Layer 2 network is expected to bolster the Ethereum DeFi ecosystem and accelerate the decentralized finance economy. By leveraging the strengths of both platforms, Metis and Aave will be able to offer their users a unique and powerful experience, driving the future of DeFi.