The blockchain lending protocol Aave will be deploying its version 3 (V3) on the Ethereum layer 2 ecosystem Metis Network after an affirmatory vote from the community. On the Aave governance forum, 100 percent of the voters approved the move and none of the voters opposed it. By connecting both ecosystems together, users of Metis will have access to the lending and borrowing features offered by Aave.

Metis Network rose in popularity during the crypto bull run in 2021 for its functionalities that allowed users to complete Ethereum transactions with affordable fees and faster speeds. However, Optimism and Arbitrum became the more preferred layer 2 networks, boasting of billions of dollars in digital tokens. To keep up with other layer 2 networks, Metis is offering its users liquidity incentives, consisting of 100 thousand native Metis (METIS) tokens, to be distributed in the course of a six month period. A token mining reward program has also been added, wherein participating protocols will receive 4 thousand METIS based on their monthly transactions. At the time of writing, METIS tokens are trading at 26 dollars, according to CoinGecko data.

Aave's version 3 on Metis Network is expected to improve market liquidity for both communities. Additionally, Aave users will benefit from rewards given out by the protocol in exchange of providing liquidity to the platform. Aave's deployment also presents a great opportunity for Metis Network to tap into more business opportunities and increase user engagement. By offering liquidity incentives, an incentive program driven by tokens, and cheaper and faster transactions, Metis Network has the chance to regain its ground and possibly surpass the performance metrics of its predecessors.



Other News from Today