Aave V3 Now Available on Metis

3 min readMay 8, 2023

MetisDAO is thrilled to announce the integration of Aave V3 on Metis Layer 2, further bolstering our DeFi offerings.

Aave V3 is an open source non-custodial decentralized lending and borrowing protocol that allows users to lend and borrow a wide range of cryptocurrencies in a permissionless and trustless manner. Aave will play a critical role in providing the efficient capital markets needed to build and sustain the Web3 Economy, as well as leveling up the composability of DeFi protocols on Metis. Users will have greater access to trustless and secure financial instruments, and developers will have the tools to innovate decentralized applications.

By integrating the Aave V3 protocol for Metis markets, 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. Additionally, Aave is a flagship protocol battle-tested security, making it a popular solution for consumers looking to lend, borrow, and generate yield with various assets.

“The integration of Aave Protocol V3 brings enhanced capital efficiency with valuable new security and 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.”

Key Functionalities

Lending

Aave will allow Metis users to deposit their funds in pools, earning yield on these. An easy way to thinking about these, would be to compare them with a bank savings account, depositors generate a yield and banks lend the money. The main difference, though, is that Aave is decentralized, non-custodial, and every single transaction can be found on-chain.

By despositing funds in Aave, users also get the ability to borrow funds in correlated and uncorrelated tokens.

Capital Efficiency.

Borrowing

Aave will allow Metis users to borrow funds by depositing collateral in the platform. This will give users an opportunity to generate yield on their collateral, while potentially finding a suitable use for their borrowed funds.

Just like banks loans help bolster growing economies, Aave’s integration in Metis have a key role in bolstering a growing ecosystem.

Builder Miner Rewards

Now that Aave is deployed on Metis, a share of transaction fees based on Aave’s monthly volume will be distributed back to them. Builder Mining Rewards (BMR) is a retroactive funding program designed to reward each project that’s integrated onto the Metis network and generated transactions, read more about it here. This additional revenue will be going to the Aave DAO’s treasury and as such, will be able to be utilized as seen fit by the Aave community at large.

The mission at Metis is to provide the infrastructure to support the growing decentralized Web3 Economy. MetisDAO’s commitment to a decentralized future is built into its very structure, including the ethos of creating a sustainable and mutually beneficial ecosystem where all are set to thrive.

ABOUT METIS DAO

MetisDAO is an organization focused on building decentralized scaling infrastructure to power web3 enterprises, and accelerate the entirety of the Web3 economy. The MetisDAO infrastructure aims to empower all Web2 business models to seamlessly migrate to Web3. The MetisDAO technical framework is custom-built to provide scalable, secure, and user-friendly solutions to decentralized organization management and incentive alignment.

ABOUT AAVE PROTOCOL

Aave Protocol is a non-custodial, open-sourced decentralized liquidity protocol that enables users to supply and borrow crypto assets.

ABOUT METIS LAYER 2

Metis Layer 2 is a first-of-its-kind, user-friendly platform built to scale Ethereum and facilitate infrastructure development. The Metis Layer 2 is 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.

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.

Follow us on: