Aave, a leading decentralized finance (DeFi) platform, has expanded its footprint by deploying Version 3 (V3) on the Sonic blockchain, marking its first Layer 1 expansion of 2025. This strategic move integrates Aave into a high-performance network boasting $15 million in liquidity and a unique revenue-sharing model that enhances the protocol’s financial sustainability.
Aave’s Entry into Sonic Blockchain
The deployment, approved through an Aave governance vote led by the Aave Chan Initiative, comes as Sonic transitions from its former identity as Fantom. Sonic officially launched its mainnet in December 2024 and currently holds over $700 million in total value locked (TVL). Through this integration, Aave enables users to lend and borrow key assets, including $USDC, $WETH, and $wS tokens, leveraging V3’s efficiency mode and gas optimization features.
Sonic’s monetization model is particularly significant for Aave, as it allows the DeFi giant to receive a portion of transaction fees—unlocking new revenue streams. Aave Labs founder Stani Kulechov emphasized the appeal of Sonic’s innovative structure and the expertise of its development team as primary reasons for the expansion.
Liquidity Incentives Drive Adoption
Sonic Labs and Aave have committed substantial resources to ensure a successful launch. The Sonic Foundation has introduced a $15 million incentive program, alongside a cap of 50 million Sonic-native $S tokens, to attract liquidity. Aave, in turn, is deploying $800,000 in stablecoins to encourage market participation and migration from other DeFi platforms.
This collaboration reinforces Aave’s position as a dominant player in the DeFi ecosystem. Sonic’s revenue-sharing mechanism aligns with Aave’s broader strategy of fostering monetizable decentralized protocols. The platform continues to offer competitive incentives to liquidity providers, mirroring its successful models on Ethereum, Arbitrum, and Avalanche. Currently, Aave holds a total value locked (TVL) of $19 billion across its supported networks, underscoring its widespread adoption.
Strategic Shift After Polygon Exit
Aave’s move into Sonic follows its governance-driven decision to halt lending services on Polygon’s Proof-of-Stake chain. Concerns arose after a rejected proposal on Polygon regarding stablecoin rehypothecation raised risk management issues within the Aave community. Despite the proposal’s rejection, Aave opted to discontinue operations on Polygon, prioritizing financial stability and security.
Since its inception in 2018, Aave has demonstrated adaptability in the evolving DeFi landscape. By integrating with Sonic, Aave gains access to an emerging blockchain ecosystem with strong community backing. As DeFi’s influence continues to expand, Aave’s strategic growth ensures it remains a leader in decentralized lending while enhancing its security framework.
With this latest expansion, Aave is set to capitalize on Sonic’s cutting-edge infrastructure and revenue-sharing model, reinforcing its role at the forefront of DeFi innovation.
