- AAVE DAO community has concluded voting on a proposal to roll out its Version 3 on Ethereum Layer 2 METIS network.
- The deployment will offer 100,000 METIS tokens as liquidity mining incentive to AAVE users over a six-month period.
- AAVE and METIS price declined despite this bullish catalyst.
AAVE DAO’s recent proposal to deploy version 3 on the Ethereum mainnet got 100% unanimous support from its community. The proposal will bring METIS liquidity incentives to AAVE users over the next six months, boosting the liquidity for both AAVE and METIS, an Ethereum layer 2 token.
Also read: BNB price bullish outlook shakes as Binance battles FUD following Bitcoin withdrawal pause
AAVE Version 3 deployment on METIS Network receives 100% approval
AAVE, a DeFi lending protocol, is set to deploy its Version 3 on the Ethereum layer 2 network METIS. The decentralized autonomous organization (DAO) proposal garnered a unanimous response from its community, and the voting concluded with 100% of votes supporting the deployment.
AAVE Metis V3 proposal
The deployment on the layer 2 protocol will effectively increase market liquidity for both the involved ecosystems. A reward of 100,000 METIS tokens will be distributed as incentives to AAVE users for liquidity-mining initiatives.
Even if the governance proposal’s execution should theoretically be a bullish catalyst for AAVE and METIS, the prices of the two tokens have nosedived by nearly 5% each, ahead of the Version 3 rollout. It remains to be seen whether the deployment turns out to be a non-event or a bullish catalyst that fuels recovery in AAVE and METIS prices.
In the bull run of 2022, METIS gained popularity among crypto traders for its cheap transaction fees and speed. Since then, the launch of Optimism and Arbitrum shadowed METIS popularity and the Total Value Locked (TVL) in the protocol is down from $469.64 million in March 2022 to $38.65 million at the time of writing.
AAVE’s Version 3 deployment could boost the utility of METIS network, aiding in the recovery of its declining TVL.
AAVE V3 deployment on METIS could be a bullish catalyst
There are two reasons why experts like CryptoNikyous believe AAVE V3 deployment could catalyze a METIS price recovery. The first is that METIS played a key role in the previous bull run, amassing upwards of $450 million in TVL, helping support fast and cheap Ethereum layer 2 transactions.
The second reason is METIS’ roadmap. On April 6, the layer 2 network shared a detailed roadmap featuring fraud proofs, sequencer decentralization, and a first-of-its-kind hybrid rollup. These features are key to the L2 growth in the Ethereum ecosystem.
Lending giant and 3rd biggest project in crypto by TVL - $AAVE is finally deploying on $METIS
— Nikyous (@CryptoNikyous) May 7, 2023
Deployment is expected to take place on Mon, 8th of May.
How to profit from this BIG catalyst?
Some easy strategies and undervalued gems.
Short thread on @MetisDAO @AaveAave pic.twitter.com/nogaBSSxAW
These features are key to the L2’s growth in the Ethereum ecosystem and could help catalyze a METIS price recovery.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.