- Aave holders are voting to release a centralized version of the protocol on Kraken’s Ink blockchain under a new name.
- The proposal plans for the centralized Aave deployment to be managed by the Ink Foundation, with revenue shared with Aave’s DAO.
- Community support for the measure is strong, with over 412,000 votes in favor and only 1,600 against as voting nears its July 21 close.
- Ink, a layer 2 blockchain launched by Kraken, has seen slow adoption, totaling just over $9 million in protocol deposits as of June.
- To boost activity, the Ink Foundation will offer incentives such as Ink token airdrops and liquidity mining programs, targeting $250 million in new deposits.
Aave is preparing to expand onto Kraken’s Ink blockchain, as Aave’s decentralized autonomous organization (DAO) votes on a proposal to deploy a centralized version of its lending protocol. The new version would operate under the control of the Ink Foundation and carry a different name, with some of its revenue returned to the Aave DAO.
The proposal, created July 17, would give Ink exclusive rights to run this version of Aave’s codebase for at least 12 months. According to the proposal, partnering with Ink would help Aave, the leading decentralized finance (DeFi) lending protocol, access new users and create additional revenue through a share agreement. As of the vote, support was nearly unanimous, with about 412,000 votes in favor and just 1,600 against. The vote is scheduled to end July 21.
“By granting a license to deploy a centralized version of the Aave codebase, Aave can expand its technology adoption while creating new revenue streams through partnerships with innovative platforms,” the proposal states. The new Ink deployment of Aave would feature several incentive programs, including an early airdrop for Ink tokens and further rewards through liquidity mining schemes, with the aim to draw in $250 million in deposits, according to the Aave DAO plan.
Ink blockchain, launched by Kraken in December 2024, has not yet found major success. Fewer than two dozen applications have joined the network, and deposits have reached just $9 million as of June, according to DefiLlama. Trading volumes on decentralized exchanges peaked at $195 million in May and dropped to $67 million the following month. Other exchange-led layer 2s, such as Coinbase’s Base and ByBit’s Mantle, have attracted far more liquidity, with Base holding $5.7 billion and Mantle $250 million.
To encourage new use, the Ink Foundation announced plans for an Ink token, whose first application will be supporting the new Aave-powered lending protocol. Initial plans set aside 4% of all Ink tokens for users of the new platform, with more incentives in Aave’s own token and GHO, its stablecoin. For the first year, the Ink Foundation has agreed to work only with Aave’s lending platform and not other competitors.
Voting results so far show overwhelming community backing for this partnership. The process remains open until July 21. Readers can find more voting details and proposal specifics here.
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