Ethereum-Based DeFi Lending Protocol Aave All Set To Launch Its Own Blockchain, CEO Hints At 2025 Timeline

DeFi lending and borrowing protocol Aave (CRYPTO: AAVE) is reportedly planning to launch its own blockchain after its upcoming V4 upgrade. 

What Happened: The protocol's CEO Stani Kulechov disclosed the news via an X post on May 27, saying, "This is not a drill, Aave Network is planned to come after V4."

Kulechov was responding to a post by Marc Zeller, a key member of the Aave governance team, who hypothesized about the existence of such a layer.

When questioned about the timeline, the CEO hinted at a launch in 2025 "for sure or earlier."

Why It Matters:  The admission by the CEO comes in the wake of a proposal to include the development of Aave Network as part of its 2030 roadmap. 

The proposal outlined that the new network would serve as the primary hub, all while maintaining its multi-chain and network-agnostic characteristics.

Aave is the largest lending protocol, and the third-largest DeFi project as of this writing, with deposits upwards of $13 billion, according to DeFiLlama. Think of it as a bank which hands out loans using blockchain technology. 

Originally built atop the Ethereum (CRYPTO: ETH) blockchain, the protocol has since branched out to other important networks like Avalanche (CRYPTO: AVAX). Zeller claimed that Aave would be the largest Ethereum layer-2 network if it existed independently as a chain.

Price Action: At the time of writing, AAVE was trading at $106.34, up 0.34% in the last 24 hours, according to data from Benzinga Pro, and more than 10% higher over the week.

Photo by Avi Rozen on Shutterstock

Read Next: MicroStrategy’s Big Move: From Bitcoin Bet To Russell 1000 Inclusion