Proposal To Activate Aave V3 On Ethereum

Monday, January 23, 2023

Quick Take

  • AIP to activate Aave V3 on Ethereum.
  • MakerDAO approves a 100 million USDC deposit into Yearn.
  • Core developers deploy the first Shanghai mainnet shadow fork.
  • MYSO Finance expands to Arbitrum.

Proposal To Activate Aave V3 On Ethereum

A proposal to activate the Aave V3.0.1 deployment on Ethereum Mainnet is now live. The proposal marks the final steps in a highly anticipated V3 upgrade, which brings higher composability to the protocol. Pre-approved assets on the new deployment include WBTC, WETH, wstETH, USDC, DAI, LINK, and AAVE.

Aave governance previously decided to do a fresh contract deployment for V3 on Ethereum instead of upgrading V2 contracts. This means users will need to migrate their existing positions from V2 to V3 on Ethereum. Aave V3 is already live on Polygon, Avalanche, Arbitrum, Optimism, Fantom, and Harmony.

MakerDAO To Deposit 100 Million USDC Into Yearn

Maker Governance approved a proposal to deposit up to 100 million USDC from its USDC Peg Stability Module (PSM) into a vault on Yearn Finance. The proposal is still subject to a subsequent Executive Vote before assets from MakerDAO’s reserves can be moved. MakerDAO aims to generate about 2% APY through a custom DeFi strategy.

Maker’s strategies involve USDC positions on Aave, Compound, Angle, Stargate, and Idle Finance. Only members approved by MakerDAO will have access to the custom vault. The capital from MakerDAO also boosts revenue for Yearn, which takes a 20% performance fee on each harvest. Yearn holds just under $500 million in TVL.

First Withdraw Mainnet Shadow Fork

Ethereum developer Marius Van Der Wijden shared that the first mainnet shadow fork for Beacon Chain withdraws was successfully deployed. A shadow fork mirrors the state of the network onto a testnet, allowing developers to test upgrade scenarios. Ethereum’s Shanghai upgrade, which will enable staking withdraws, is planned for March.

Wijden also shared that developers will spin up “evil nodes” to battle-test the fork. Evil nodes propagate invalid blocks and messages to the network in an effort to deceive honest nodes to join the bad chain. Developers plan to deploy a public Shanghai testnet in the coming weeks. An initial pre-Shanghai testnet was deprecated in December.

Taiko Releases Q4 2022 Recap

Taiko, an EVM-equivalent ZK-Rollup published its Q4 2022 recap, covering the network’s research and development efforts. Taiko publicly unveiled its L2 ZK-Rollup in October and deployed a public testnet in December. Taiko removed  proposer and prover whitelisting to enable permissionless participation.

Taiko’s developments are also open-source, allowing developers to fork and experiment with the ZK-EVM implementation. In Q4, Taiko implemented a bridge relayer in Go, built a UI for the bridge, fixed several bugs, and made improvements to MPT circuit. Taiko’s research includes caulk, hyperplonk, and plonky2 proof systems.

MYSO Finance Expands To Arbitrum

Structured yield protocol MYSO Finance announced plans to deploy on Arbitrum One. A deployment on the Arbitrum Goerli testnet is now live with a wETH/USDC pool. MYSO launched on Ethereum earlier this month with an initial rETH/WETH pool, which offers leveraged and fixed-interest positions. According to MYSO, loans are free from liquidation risks.