StarkWare Proposes to Deploy Aave on its ZK-Rollup L2 StarkNettw

StarkWare Proposes to Deploy Aave on its ZK-Rollup L2 StarkNet

A new proposal has been submitted to Aave’s governance forum that calls for deploying the DeFi lending protocol to StarkNet, StarkWare’s permissionless and decentralized ZK-Rollup.

Yael Doweck, product manager at StarkWare, submitted the proposal to onboard the protocol on behalf of StarkNet creator, much like MakerDAO has on its L2.

“With the success of the Polygon and Avalanche markets, deploying on StarkNet incurs additional value for Aave,” noted the proposal.

While Polygon was a sidechain that has its own security model, StarkNet is an L2 solution that brings Validity rollups added security on top of L1’s. As such, StarkNet aims to attract applications and users that would be hesitant to onboard to sidechains.

In addition to its security, StarkNet’s capital efficiency in terms of a shorter withdrawal period will allow this deployment to connect liquidity between networks efficiently, it said.

Currently, 14 DeFi and gaming applications have been built on StarkNet, and it also has a partnership with one of the leading centralized exchanges, OKEx.

StarkWare, the core StarkNet protocol developer, proposed co-funding this effort alongside the DAO on a 50/50 basis.

Aave is one of the leading decentralized finance protocols with $14.15 billion of assets locked in it, down from a $19.13 bln high from late October, making it the fourth-largest DeFi project. Meanwhile, its governance token AAVE is trading around $248, 62.5% off of its all-time high in May this year.

The DeFi project has also partnered with decentralized financing protocol Centrifuge to allow small and medium enterprises to access the liquidity available in the crypto market by tokenizing real-world assets. After tokenizing the likes of bridge loans, freight invoices, and trade receivables, among others, Aave will use those tokens as collateral.

“The RWA Market bridges the regulated world of TradFi to the trustless world of DeFi,” Centrifuge developer End Labs’ Co-founder Lucas Vogelsang said. “It’s a huge step for the Aave Protocol.”

The idea is to “allow Aave depositors to earn yield against stable, uncorrelated real-world collateral” by building a bridge between the DeFi capital and the real-world businesses. Meanwhile, Centrifuge issuers will be able to stake collateral and borrow from the market across a wide variety of asset classes.

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Author: AnTy

Loopring Launches L2 Wallet with zKRollup Baked In, Ethereum L2 Developer StarkWare Introduces L3

Loopring Launches L2 Wallet with zKRollup Baked In, Ethereum L2 Developer StarkWare Introduces L3

Loopring also announced direct L2 fiat on-ramps to “onboard the masses” while ZK-rollups focused StarkWare targets applications’ need for specific tailoring with L3.

Ethereum Layer 2 zkRollup protocol, Loopring (LRC), has announced the launch of its L2-exclusive Counterfactual Wallet.

“A major step forward today on our mission to onboard the masses directly onto Ethereum secured Layer 2,” said the team.

Loopring, which is building non-custodial products on top of its Layer 2 that includes Ethereum smart wallet and an AMM DEX, unveiled the iOS version of the wallet on Tuesday, with the Android version coming soon.

According to the Loopring team, this wallet is the first Ethereum wallet with zkRollup scaling baked in. The scaling solution aims to help smaller users who are priced out of Ethereum due to its high gas fees.

Building the wallet on L2 means users don’t have to pay costly creation fees, as they have to on L1.

“One day our goal is to give users a complete L2-only experience, without the need to ever have to withdraw back to L1.”

The Loopring team claims that the Counterfactual Wallet offers 100x cheaper fees while coming with zk-baked in, which ensures the user gets the same security as Ethereum. ETH -0.88% Ethereum / USD ETHUSD $ 3,986.55
-$35.08-0.88%
Volume 13.87 b Change -$35.08 Open $3,986.55 Circulating 118.85 m Market Cap 473.8 b
2 h SEBA Bank Submits A Proposal To Be A Whitelister to Aave Arc 9 h Loopring Launches L2 Wallet with zKRollup Baked In, Ethereum L2 Developer StarkWare Introduces L3 9 h Trump Warns of A Crypto Explosion Bigger Than Big Tech While Appreciating Former First Lady’s NFT Plans

Besides the wallet, the team also announced direct L2 fiat on-ramps, removing a massive barrier to Loopring adoption. Initially, direct deposits on Loopring L2 and Loopring Wallet have been introduced, with withdrawals to come soon too.

In its announcement, the Loopring team urged centralized exchanges to support direct layer 2 deposits and withdrawal as well.

On the back of these developments, Loopring’s native token LRC, a $2.8 billion market cap cryptocurrency, spiked 26% in value. As of writing, LRC is trading around $2.26, down 40% from its all-time high hit just last month.

The same day as Loopring’s announcement, StarkWare, an Ethereum L2 developer using ZK-rollups, introduced L3, the application-specific layer built recursively over L2.

While L2s boost scalability with reduced gas cost per transaction and retain the benefits of decentralization, StarkWare said some applications need specific tailoring, and that’s why it is bringing in L3.

L3 will offer the benefits of hyper-scalability, better control, privacy, cheaper/simpler L2-L3, and L3-L3 interoperability, and acting as a “Canary” network for L2.

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Author: AnTy