Aave, the leading decentralized finance (DeFi) lending platform, is considering expanding its operations to the Bitcoin layer-2 network Spiderchain. The initiative, known as the Aave-Chain Initiative (ACI), is currently seeking feedback from its community regarding this potential move.
Spiderchain, developed by Botanix Labs, was created to be compatible with other networks that utilize the Ethereum Virtual Machine (EVM), which powers Ethereum and smart contracts. This compatibility would allow Aave to tap into the emerging Bitcoin DeFi environment, which currently has over $17 billion locked in total value.
The proposal to deploy on a Bitcoin layer 2 network underscores the growing interest in bringing common crypto functionalities to the original blockchain. As Bitcoin’s price recently reached an all-time high of $93,445, with a dominance in the crypto industry of 61.38%, developers from other networks may be looking to access the substantial reserves held in BTC.
Botanix Labs aims to make Spiderchain compatible with Ethereum-based applications, enabling seamless integration with Bitcoin. However, before moving forward with this integration, potential security risks must be identified and addressed by the protocol. ACI has not provided a specific timeline for this process.
In the past 24 hours, Aave’s native token (AAVE) has experienced a slight drop of nearly 8%, currently trading at around $168, according to CoinDesk Indices. This decrease is likely a result of the overall correction in the crypto market following Bitcoin’s surge above $90,000 on Wednesday.
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As Aave explores the potential expansion to the Bitcoin layer-2 network Spiderchain, the DeFi ecosystem continues to evolve, offering new opportunities for decentralized finance projects to leverage different networks and enhance their functionality. Stay tuned for further updates on this developing story.
