Aave has deployed its lending markets on Sonic.
Background
- The integration with Sonic marks Aave’s first layer-1 [L1] expansion in 2025
- The decision to deploy Aave v3 on Sonic came after a governance proposal was green-flagged in a voting round
Why should you pay attention?
- The latest move is supported by liquidity commitments
- This includes a $15 million in funding from the Sonic Foundation, around 50 million Sonic-native S tokens, and $800,000 in stablecoins from Aave and migration incentives
- According to on-chain data, Aave already dominates the lending sector on Arbitrum by 85%
- It is also a top lending project on Base by a $100 million+ margin
- Given the dominance exerted on other home-base chains, Aave can soon be expected to establish a niche for itself in Sonic’s already flourishing ecosystem
Who said what?
- The Aave team emphasized,
“Users can now borrow, supply, and earn incentives”
- Stani Kulechov, founder of Aave Labs, said,
“Sonic’s focus on its innovative revenue-sharing model and team expertise creates a compelling opportunity for Aave to expand its reach and participate in a growing, community-oriented DeFi ecosystem”
Zooming out
- With an aggregate TVL of around $18 billion, Aave operates on several chains including Avalanche, Arbitrum, BNB Chain, Base, Optimism, Gnosis, Polygon, Metis, and Scroll
