- Aave v3 is now live on Sonic mainnet expanding its DeFi lending market.
- Users can earn rewards with $15M in S tokens and $800K in AAVE tokens.
- Aave plans a token buyback at $1M per week for six months.
Aave has officially expanded its version 3 network to the Sonic mainnet, the blockchain platform announced on March 3. This deployment follows a recent governance proposal aimed at bringing Aave’s decentralized finance (DeFi) lending market to Sonic. Previously, this network was known as Fantom.
Web3 platform and Aave contributor bgdlabs managed the deployment. Risk assessments were conducted by Chaos Labs and LlamaRisk. Chainlink, an on-chain finance and oracle platform, provides price feeds for the network.
Sonic Labs introduced its layer-1 mainnet in December 2024. During the same month, the Aave Chan Initiative proposed the v3-to-Sonic expansion. The AAVE community later approved the proposal, clearing the way for this deployment.
New Lending and Borrowing Opportunities for Users
The expansion marks Aave’s first deployment of the year. This move increases its presence in the broader DeFi ecosystem. Sonic users can now access borrowing and lending opportunities while earning DeFi-related incentives.
Aave and Sonic Labs are offering incentives for early adopters. The announcement on X confirmed $15 million in S tokens and $800,000 in AAVE tokens for users. Supported assets include USDC, WETH, and wS.
Upcoming Tokenomics Revamp and Governance Proposals
On March 4, Aave Chan Initiative founder Marc Zeller introduced a proposal for Aave’s tokenomics revamp. This includes a new revenue redistribution model and an “Umbrella” safety system. The proposal also suggests forming the Aave Finance Committee (AFC). This initiative is part of Aave’s ongoing efforts to improve financial security and governance.
The revenue model retains the previous distribution for GHO stakers under the “Merit” program. It also introduces a non-transferable ERC-20 token called Anti-GHO. All AAVE and StkBPT stakers will generate this new token. According to the proposal, Aave DAO’s cash reserves have increased by 115% since August 2024. The DAO generates revenue from interest fees on loans and liquidations.
The Umbrella system aims to protect users from bad debt. It would ensure liquidity remains in the protocol until cooldown maturity. This mechanism is expected to reduce risks related to bank runs and improve financial stability.
Additionally, the proposal includes a token buyback and redistribution strategy. Aave’s treasury funds would finance the buyback program at a rate of $1 million per week for six months. The Aave Finance Committee would oversee the process to ensure financial sustainability.
