DeFi protocol Aave has requested its token holders to participate in a Requests for Comments (ARC), They need to commit to the Ethereum (ETH) POS merge.
The Aave companies have proposed this ARC which commits the Aave DAO to select Ethereum Mainnet running under Proof of Stake consensus. https://t.co/eDGwjLFKz7
— Aave (@AaveAave) 16 August 2022
According to the document:
“The Away DAO is committed to opting for the Ethereum mainnet running under Proof-of-Stake (PoS) consensus over any Ethereum fork running Optional Consensus.”
The August 16 resolution will formally stipulate that the deployment of DAOs on the Ethereum PoS mainnet is “and the ‘prescribed’ governance of DAOs and markets.”
It will also give the community custodian power to shut down Aave deployments on any Ethereum hard fork after the merger.
According to the post, the Away protocol code will be fully functional on Ethereum POS. It was revealed that the deployment of Aave V3 on the Ropsten and Goerly testnets was successful.
Meanwhile, the ARC document also states that the protocol developers believe that no Ethereum fork operating on an alternative consensus can effectively maintain a viable Away market.
“In order to ensure the existence of the protocol to the community, the Aave DAO should consider strongly indicating that the Aave protocol should be committed to the Ethereum mainnet, which operates under the Proof of Stake consensus.”
The outcome of the vote is expected to show the consensus of DAO members on the transition of Ethereum to PoS.
The much-anticipated Ethereum merge will transform the Ethereum mainnet transition from a Proof-of-Work (PoW) consensus to a Proof-of-Stake network. While many in the Ethereum community are looking forward to it, it has generated a lot of drama as some consider PoW hard forks post-merger.
Aave is one of the largest DeFi platforms and has the third largest market cap among DAOs. The protocol started on the Ethereum mainnet, and the total value of assets locked on it is $5.44 billion. It has also deployed on networks such as Polygon (MATIC), Avalanche (AVAX), Optimism, Harmony and Phantom (FTM).
Its support for merges is not surprising, as major protocols such as Chainlink (LINK), USDC issuer Circle, and Tether have also announced support for the migration.
Credit : cryptoslate.com