Aave v3 to launch on X Layer, the Ethereum Layer 2 incubated by OKX

Aave v3 is launching on X Layer, the Ethereum Layer 2 developed in collaboration with cryptocurrency exchange OKX and Polygon Labs. The integration is expected to go live "in the coming weeks," X Layer announced on Wednesday.

The move will bring the largest decentralized lending protocol to the ZK rollup solution, a move that could boost activity on the chain. L2Beat records X Layer as the 30th-largest rollup , with approximately $28 million in total value secured.

"By working with Aave, X Layer expands liquidity, utility, and credibility for the entire ecosystem," the X Layer team wrote. "This collaboration establishes a critical DeFi infrastructure pillar that accelerates composability, enabling developers to build the next wave of financial primitives and integrations on X Layer."

The move also comes as OKX looks to integrate other decentralized solutions, like LayerZero’s USDT0 "omnichain" stablecoin, to bolster the functionality of its Layer 2.

Integrating Aave will unlock “native lending markets” with deep liquidity pools for X Layer users, enabling them to quickly and cheaply swap assets onchain. The deployment will also feature “seamless integration” with the OKX wallet, exchange platform, and “Earn” service.

“The Aave v3 deployment represents more than protocol integration. It's the beginning of a new era where institutional or retail capital and decentralized finance converge on a platform built for scale, security, and seamless user experience,” the X Layer team wrote.

At launch in 2024 , X Layer enabled users to deposit and withdraw crypto via OKX and had integrations with over 170 dapps enabling token swaps, staking, and other smart contract use cases. OKX is one of the most active centralized exchanges, with over $60 million in total volumes so far in September, according to The Block's data .

X Layer, built using Polygon’s software development kit and zero-knowledge cryptography, reportedly boasts 5,000 transactions per second, sub-cent transaction costs, and 400 millisecond block times.

Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures .

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Aave v3 to launch on X Layer, the Ethereum Layer 2 incubated by OKX

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