Aave community mulls proposal to expand to Neon EVM on Solana

The governance body of the Aave AAVE -0.49% lending protocol is reviewing a proposal to deploy version 3 on Neon EVM — a smart contract platform that enables Ethereum dApps on the Solana SOL -1.69% network.

Made by the Neon Foundation and Aave contributor Aave Chan Initiative, this proposal seeks to expand Aave’s lending services to the Solana blockchain as a minimal viable product (MVP) at first. It is currently in the “temperature check” phase — where Aave community members can share their views and feedback on the proposed integration.

The proposal recommends the limited introduction of assets and the adoption of conservative risk parameters. Specifically, it mentions three types of collateral — SOL, mSOL, jitoSOL — and a single borrowable asset, USDC.

If approved, the deployment would allow Aave to utilize Solana’s liquidity for its lending services. According to the proposal, a version of Aave v3 has already been deployed on Neon EVM’s developer-focused testnet (devnet).

If the proposal gains sufficient preliminary support, it will advance to the next phase, followed by an on-chain vote to finalize the decision.

Aave v3 is the third major iteration of the Aave protocol, a decentralized and non-custodial liquidity market protocol that enables users to lend and borrow various crypto assets.

More than $5 billion is locked in Aave v3 lending pools across 10 blockchains — with the majority, $4 billion, on Ethereum.