Aave wants to operate on Spiderchain, which allows Ethereum apps to be compatible with Bitcoin.
If the proposal is approved, they will launch a synthetic version of bitcoin on Spiderchain.
Aave, one of the world’s largest DeFi lending protocols with a total value locked of $17 billion, is exploring the possibility of deploying its version 3 (V3) on Spiderchain, a second-layer Bitcoin network developed by Botanix Labs .
This movement seeks to integrate the Ethereum decentralized finance and lending ecosystem with the Bitcoin network, expanding opportunities for users from both communities.
Botanix Labs proposed this integration with the aim of expanding Aave into the emerging Bitcoin DeFi environment. Spiderchain is described as the first Bitcoin L2 with a full DeFi ecosystem, attracting a user community that includes new Bitcoin investors now transacting on-chain for the first time.
Following the launch of the Spiderchain mainnet, Botanix Labs plans to introduce a 1:1 synthetic representation of bitcoin (BTC) on its layer 2, which promises to be one of the most decentralized forms of wrapped bitcoin or wrapped BTC, in the Ethereum Virtual Machine (EVM) ecosystem.
According to the proposal, this could allow Aave to diversify the types of BTC assets available on its platform, considering the growing acceptance within the Bitcoin community.
Additionally, Botanix Labs intends to incorporate Aave’s GHO stablecoin into the entire Spiderchain ecosystem, which could strategically align both projects and provide an increase in income for Aave DAO.
Spiderchain is designed to be compatible with protocols that use EVM, the software that powers Ethereum and enables smart contracts. Botanix’s goal is to make any Ethereum-based application compatible with Bitcoin, thus offering BTC users the possibility of interacting with DeFi applications without needing to bridge other chains.
Aave’s implementation on Spiderchain could bring some of Aave’s liquidity to the ecosystem of Bitcoin. Botanix Labs also claims to have secured TVL commitments from BTC whales who have never participated in DeFi before.
Among the first comments Regarding the proposal, the opinion of the user “EzR3aL” on the Aave governance platform stands out, who expressed his support for the initiative: “at the current stage, I agree 100%. I think that with a BTC L2 we will be able to attract more and especially new users to the existing base,” he indicated.
“EVM users are natively switching between chains, while bitcoiners never had this kind of opportunity. “This could be an opportunity to capture market share in a potential new market and also a growth opportunity for GHO,” he said.
Aave has not only been relevant due to its size in the DeFi market, but also due to its recently increased visibility due to its association with the DeFi platform World Liberty Financial, announced by the now president-elect Donald Trump, as reported by CriptoNoticias.
This article was created using artificial intelligence and edited by a human Editor.
