Aave has officially expanded its version 3 protocol to the Sonic mainnet, further solidifying its position in the decentralized finance ecosystem. This marks Aave’s first major expansion of the year, introducing new opportunities for borrowing, lending, and earning DeFi incentives.

Aave’s v3 Deployment on Sonic

The deployment of Aave v3 on Sonic follows a governance proposal aimed at integrating the DeFi protocol into the network, formerly known as Fantom. The transition was led by Web3 developer bgdlabs, with risk assessments conducted by Chaos Labs and LlamaRisk. Chainlink’s oracle platform provides essential price feeds to ensure accurate market data.

Sonic Labs launched its layer-1 mainnet in December 2024, the same month the AAVE community approved the governance proposal to bring v3 to the network. This move is expected to enhance liquidity and expand Aave’s ecosystem to new users.

Incentives and Early Adoption Benefits

To encourage early adoption, Aave and Sonic Labs are offering lucrative incentives:

• $15 million in S tokens for liquidity providers and users.
• $800,000 in AAVE tokens as additional rewards.
• Support for key assets, including USDC, WETH, and wS.

These incentives aim to drive participation and establish Aave v3 as a major DeFi lending platform on Sonic.

Why Aave Chose Sonic for Expansion

Aave’s expansion strategy has always focused on promising L1 and L2 Ethereum-compatible networks. The decision to deploy on Sonic was based on:

• Strong developer team and network history.
• Innovative fee monetization model, allowing DeFi apps to generate additional income.
• Scalability and efficiency of Sonic’s layer-1 mainnet.

Sonic Labs co-founder Andre Cronje emphasized that Sonic is “the only chain where you get paid for the activity you create,” making it a compelling platform for Aave’s next stage of growth.

Aave’s Multi-Network Expansion Strategy

Since its launch on Ethereum in 2018, Aave has expanded across multiple blockchains, including:

• Polygon, Arbitrum, and Optimism
• Base, Avalanche, and BNB Chain
• Gnosis Chain and now Sonic

Currently, Aave has a total value locked (TVL) of over $18.7 billion, slightly down from its peak of $22 billion in December 2024.

As Aave continues expanding, its integration with Sonic is expected to attract more users and liquidity, further solidifying its role as a leader in the DeFi space.

Aave’s