DeFi protocol Aave has requested its token holders to partake in an Aave Request for Comment (ARC), requiring them to support to Ethereum’s (ETH) POS merge.
The Defi protocol is set to commit to selecting the Ethereum Mainnet running under the Proof of Stake (PoS) consensus over any Ethereum fork running an alternative consensus.
The proposal would formally determine that the DAO’s deployment on the Ethereum PoS mainnet is ‘the canonical’ governance of the Aave DAO and markets. Further, it will also provide the community the guardian power to shut down Aave Deployments on any Ethereum hard fork post-merge.
According to the governance document, the Aave protocol code would be completely functional on Ethereum PoS. It was indicated that Aave V3 deployments on Ropsten and Goerli testnets were successful.
The ARC document also noted that protocol developers believe that no Ethereum fork running on an alternative consensus can actually sustain a viable Aave market.
So, to ensure the continued existence of the protocol for the community, the Aave DAO is considering signaling strongly that the Protocol should commit to the Ethereum Mainnet, running under Proof of Stake consensus.
The vote outcome is anticipated to show the DAO members’ unanimity on the Ethereum transition to PoS.
The highly anticipated Ethereum Merge will see the Ethereum mainnet shift from a proof-of-work (PoW) consensus to a proof-of-stake network. While many within the Ethereum community look forward to this merge, it has caused lots of drama as some have considered PoW hard forks after the merge.
Aave is one of the largest DeFi platforms and has the third-largest market cap among DAOs. The protocol began on the Ethereum mainnet, and the total value of assets locked on it is $5.44 billion. It has also been deployed on networks such as Polygon (MATIC), Avalanche (AVAX), Optimism, Harmony, and Fantom (FTM). Its support for the merge is not surprising, considering significant protocols like Chainlink (LINK), USDC issuer Circle, and Tether have also expressed support for the migration.
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