Aave, a decentralized finance (DeFi) protocol, has asked its token holders to take part in an Aave Request for Comment (ARC), which will require them to agree to the PoS merge of Ethereum (ETH).
The proposal on August 16 would formally decide that the Aave DAO and the markets’ deployment on the Ethereum Proof-of-Stake (PoS) mainnet is true governance.
Additionally, it will grant the community authorization to stop Aave Deployments on any Ethereum hard fork after the merge.
Based on the post, Ethereum PoS is fully compatible with the Aave protocol code. The post revealed that the Aave V3 deployments on Ropsten and Goerli testnets were successful.
According to the ARC document, protocol developers think the Aave market can be effectively sustained with no Ethereum fork running on an alternative consensus.
The voting result is expected to show whether the majority of the DAO members agree to the Ethereum transition to PoS.
The much anticipated Ethereum Merge will be transitioning the Ethereum mainnet from a Proof-of-Work (PoW) consensus to a PoS network.
Although a good chunk of the Ethereum community look forward to the Merge, it has sparked some controversies as some have considered PoW hard forks post-merge.
Aave is currently ranked as the third largest market cap among DAOs and is one of the largest DeFi platforms out there. The protocol’s total value of assets locked is $5.44 billion. Besides Ethereum, it has also been deployed on networks such as Optimism, Harmony, Fantom (FTM), Avalanche (AVAX), and Polygon (MATIC).
Given that the major protocols like Chainlink (LINK), USDC issuer Circle, and Tether has announced their support of the Ethereum Merge migration, it is not surprising Aave is also supporting the merge.
