Aave V3, a decentralized non-custodial liquidity protocol, has launched on Celo, a Layer-2 network designed for fast, affordable transactions. This integration allows Celo users worldwide to borrow, lend, and earn yield with minimal transaction costs. It also offers one-block finality and one-second transaction times due to Celo’s upcoming migration to an Ethereum Layer 2. The initial deployment includes collateral and borrowable assets such as CELO, USDT, USDC, cUSD, and cEUR, with potential for more assets later, including Celo’s stablecoins.
The move is supported by the Aave community to extend the protocol to Celo’s mobile-first ecosystem. Isha Varshney from the Celo Foundation highlighted that Aave’s launch significantly contributes to providing accessible financial tools globally. Ethereum co-founder Vitalik Buterin commended Celo’s growth, noting its surpassing of Tron in daily active addresses due to stablecoin usage, reinforcing the importance of improving global access to financial services.
Stani Kulechov, Aave Labs Founder, mentioned that deploying Aave on Celo could attract a new user base from mobile-first regions and enhance stablecoin usage for simple transactions. This will benefit Celo users by providing access to a DeFi lending protocol, enhanced liquidity, and increased DeFi adoption, especially in emerging markets. Meanwhile, Aave users will enjoy access to Celo’s user base, low transaction costs, and potential integration with Celo’s stablecoins.
Marek Olszewski, Celo co-founder, emphasized that partnering with Aave supports their shared vision for a more inclusive digital economy. Aave has also introduced a proposal to update its tokenomics, focusing on various aspects including staking rewards and liquidity management.
The world’s largest liquidity protocol, Aave, now facilitates transactions with Celo-native assets, offering collateral options in CELO, USDT, and USDC, and borrowable assets including cEUR and cUSD. This integration was implemented by @bgdlabs for Aave DAO with risk analysis from @chaos_labs. @chainlink provides secure price feeds.
