On Monday, the Aave platform, which allows users to borrow and lend money to one another, received clearance from the Federal Reserve. Until now, there has never been a proposal for cross-chain governance for decentralized finance, commonly known as Decentralized Finance.
According to DeFi Llama, the assets are worth a total of nearly $12 billion in their whole. They claim that Aave, which the Ethereum network built, sent a proposal to the Polygon Fx Portal, which the Aave network created, according to the project’s developers. After confirming that the information obtained from Ethereum was correct, they then forwarded it to the Polygon network for confirmation.
The Aave cross-chain governance bridge contract received the data when the timer ran out. The contract decoded it and put the operation on hold until the timer ran out another time. According to the developers, Aave’s cross-chain governance bridge’s design is to use it with any chain that supports the Ethereum Virtual Machine and cross-chain communications, including most cryptocurrencies.
The initial recommendation for cross-chain governance in the Aave polygon business has proven to be a successful model, as evidenced by its implementation. This notion from Aavegotchi marks a big step forward in multi-chain governance systems, which are currently underdeveloped. I think it’s a great idea. There are several new assets in the portfolio: Aavegotchi, Balancer, Curve, DeFi Pulse Index, Link, and SushiSwap are just a few examples.
Using Aave Improvement Protocols
Arbitrum and Polygon-related contracts are now available in the repository, and they may be accessed using this link. Using Aave Improvement Protocols, often known as AIPs, users can submit suggestions to the Aave platform. This is what users will use to improve various parts of the DeFi platform. The revelation of supposed security holes in the xSushi and DeFi Pulse Index tokens and an automated market maker and liquidity provider token pair led to the submission of an AIP by Gauntlet Network in October. It was in which effectively halted the borrowing activities for these tokens. Seven hundred ten thousand seven hundred twenty-seven people supported the initiative four days after the announcement.
However, not everyone is enthusiastic about cross-chain initiatives. Further, it is evident by the outpouring of support on social media from blockchain enthusiasts. Vitalik Buterin made headlines last month when he stated that cross-chain applications were troublesome. Because they could be impossible to repair if one network had a 51 percent attack. In contrast, cross-chain transactions carry out on another web.
Moreover, hackers can spread a virus by attacking a single network, particularly small-cap companies, making them more vulnerable. He cautioned users against using cross-chain apps since they may be more vulnerable.
“The views and opinions on this Crypto News Website are solely those of the authors and contributors. These views and opinions do not necessarily represent those of iBaseTrading or its partners.”
