Metis DAO, an Ethereum-based layer-2 blockchain, has finally gotten Aave’s approval and is now a top candidate for its V3 deployment. Aave has long since mentioned the possibility of teaming up with the decentralized autonomous company but has only recently taken serious steps to make it a reality. On January 16th, Metis DAO made a tweet announcing this news.
Saying it is one thing, but proving it is another.
The newest network candidate for an Aave v3 deployment is an Ethereum L2 and it's called Metis Andromeda🌿 https://t.co/qfU27DjW44 pic.twitter.com/VhyyrhusG0
— Metis 🌿 (@MetisDAO) January 16, 2023
This development follows a thorough analysis of Metis’ infrastructure to ascertain whether it can handle integration with Aave. BGDLabs, a popular web3 institution that analyzes crypto projects, did a meticulous dive into the Metis DAO recently and published a mostly positive pdf report about it. Soon after the report was published, Metis was shortlisted for Aave V3 integration.
Aave is a decentralized liquidity protocol that enables its users to invest and borrow liquidity. It allows suppliers to earn profits from interest accrued on the liquidity they supply. Other users, or borrowers, can borrow from the platform without having to stake too much as collateral.
While Aave has been offering this much functionality for a while, it has always identified lapses and made possible improvements. So the protocol routinely updates itself, with Aave V3 being the latest of them.
In addition, this current version comes with additional functionality. Portals, one of the newest improvements, is a bridge-based function that allows Aave V3 markets to trade liquidity with other protocols. Efficiency mode, another recent addition, allows borrowers to utilize the highest credit possible based on their collateral. The V3 protocol also comes with risk management, improved decentralization, and troubleshooting features.
While all these improvements are impressive and pretty reasonable, they require a strong DAO network to function. This is where MetisDAO comes in.
Metis DAO is a web3 network aimed at growing decentralized autonomous organizations or DAOs. It allows a community of people to exercise voting and decision-making power aside from the organization’s main board of directors.
For a P2P platform to properly function, DAOs are essential. And this is why Metis is very critical to Aave at this point. People are already talking about Aave’s possible integration with Metis’ mainnet, Andromeda. A Twitter user analyzed this current situation, calling Metis DAO an L2 underdog.
Despite hailing Metis for its incredible speed, the thread identifies its inadequate number of dev activities as a problem. But while it needs more active dApps to solidify itself further, Metis DAO is certainly already a force to be reckoned with at the moment.
