News Report Technology
September 11, 2024

Aave Community’s New ARFC Proposal Suggests Introducing cbBTC To Aave V3

In Brief

Aave Chan Initiative put forward an Aave Request for Final Comments proposal to integrate Coinbase’s cbBTC into the Aave V3 protocol on Base.

Aave Community's New ARFC Proposal Suggests Introducing cbBTC To Aave V3

One of the driving forces behind the decentralized finance (DeFi) lending protocol Aave, Aave Chan Initiative (ACI) put forward an Aave Request for Final Comments (ARFC) proposal to integrate Coinbase‘s cbBTC into the Aave V3 protocol on Base.

cbBTC, a new wrapped Bitcoin based on BitGo’s Wrapped Bitcoin (WBTC) from Coinbase for the Base blockchain, is scheduled for release this month. The proposal outlines that this asset will offer additional options for Bitcoin holders interested in engaging in DeFi activities on Aave V3. By integrating cbBTC into Aave V3, individuals will gain more ways to use Bitcoin holdings, which is expected to enhance liquidity and engagement within the protocol.

Moreover, integrating cbBTC will enable users to leverage Coinbase’s liquidity and reputation, simultaneously also leveraging the advantages of Aave’s established lending and borrowing features. This combination holds the potential to draw more mainstream users to Aave, fostering its development and adoption.

The launch of cbBTC could also potentially shift market share from existing wrapped BTC assets such as WBTC. However, since the goal is to offer an alternative, this is not viewed negatively. ACI anticipates that this will have a modest positive effect on the adoption of Bitcoin on Aave.

Additionally, the proposal highlights that the Aave Merit program will offer $150,000 in incentives over a period of three months. While there is interest from potential participants, no firm deposit commitments can be made until the pool parameters are established.

It is a liquidity management protocol that enables users to borrow and lend cryptocurrency assets across supported networks, including Ethereum, Avalanche, and Arbitrum. Its Aave V3 builds on the platform’s core features—such as aTokens, instant liquidity, stable rate borrowing, and credit delegation—by introducing several enhancements. These improvements aim to increase capital efficiency, bolster security measures, and support cross-chain functionality, while also promoting greater decentralization within the protocol.

Recently, Aave launched a temperature check proposal to assess community support for potentially approving the Superlend DeFi protocol deploying a modified version of Aave V3 on Etherlink, as well as on Arbitrum.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

More articles
Alisa Davidson
Alisa Davidson

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

Hot Stories
Join Our Newsletter.
Latest News

From Ripple to The Big Green DAO: How Cryptocurrency Projects Contribute to Charity

Let's explore initiatives harnessing the potential of digital currencies for charitable causes.

Know More

AlphaFold 3, Med-Gemini, and others: The Way AI Transforms Healthcare in 2024

AI manifests in various ways in healthcare, from uncovering new genetic correlations to empowering robotic surgical systems ...

Know More
Read More
Read more
BNB Chain Unveils Annual Report, Highlighting Network Consolidation And 58.2% TVL Growth Among Major Achievements
News Report Technology
BNB Chain Unveils Annual Report, Highlighting Network Consolidation And 58.2% TVL Growth Among Major Achievements
December 23, 2024
Tokenization, Wallets, and Gaming – Catalysts for Ethereum’s Second Decade
Opinion Markets Software Technology
Tokenization, Wallets, and Gaming – Catalysts for Ethereum’s Second Decade
December 23, 2024
AdEx’s AURA Enables AI-Powered Web3 User Activity Analysis For Advanced Targeting
News Report Technology
AdEx’s AURA Enables AI-Powered Web3 User Activity Analysis For Advanced Targeting
December 23, 2024
How Foresight Ventures is Bridging East and West to Shape the Future of Web3 Investments
Interview Business Markets Software Technology
How Foresight Ventures is Bridging East and West to Shape the Future of Web3 Investments
December 23, 2024