Aave on Avalanche (AVAX) just touched $1 billion. Here’s why

By Ana Grabundzija

After Aave got deployed on the Avalanche (AVAX) blockchain, the value of deposited assets on the popular lending protocol increased by $1 billion in only a matter of hours.

Avalanche’s ecosystem is expanding as the network witnesses a major influx of attention and liquidity, all boosted by hefty incentives.

Influx of liquidity

“Aave is live on Avalanche – launching alongside $20M in AVAX incentives,” read the network’s tweet, welcoming the lending protocol’s deployment.

.@AaveAave is live on #Avalanche–launching alongside $20M in $AVAX incentives.

…#AvalancheRush in full force this autumn: https://t.co/8CNKNIEGtB pic.twitter.com/6mhppIsrDw

— Avalanche (@avalancheavax) October 4, 2021

In a matter of hours following the launch, an impressive influx of liquidity was recorded, as Aave’s total value locked (TVL) on Avalanche surpassed $1 billion.

Aavelanche touched billy 🥳 congrats to Aave & Avalanche communities 👏 pic.twitter.com/iOQaP25iU8

— Keep building and support each other (👻,🐻‍❄️) 👘 (@StaniKulechov) October 4, 2021

The TVL on Avalanche could continue increasing since the Avalanche Bridge (AB) enabled transferring assets to and from Ethereum (ETH).

Those users with assets on Ethereum can now bridge them via @avalancheavax to deposit on the Aave Protocol. https://t.co/3xA1CPrsc2

— Aave (@AaveAave) October 4, 2021

Aave is currently recording around $15,17 billion in TVL, out of which $12.18 billion are on Ethereum, $1.98 billion on Polygon (MATIC), and, as of recently, $1.01 billion on Avalanche, according to DeFi Llama’s data.

Currently, Avalanche’s TVL records $4,4 billion, with its native protocols dominating in share. Lending market BENQI is recording $1,19 billion, while Trader Joe DEX follows with $1,17 billion in TVL.

Incentives and Dapps

With a forcible throughput, allowing more than 4,500 transactions per second (TPS), Avalanche is positioning itself as a fast and energy-efficient competitor among Proof of Stake (PoS) blockchains.

The TVL on Avalanche saw a significant uptick lately, particularly following the launch of the protocol’s new DeFi incentive program.

Dubbed Avalanche Rush, a $180 million liquidity mining grant and airdrop program was launched with the aim of onboarding some of the best DeFi protocols to the network, Aave and Curve, just to begin with.

Aave enables users to borrow and lend crypto while offering attractive interest on deposits, and Curve, an exchange liquidity pool on Ethereum, facilitates stablecoin trading.

We have launched on @avalancheavax!

Still work in progress (will be more), but here’s a link to ape https://t.co/Vkr1kUgyO0

— Curve Finance (@CurveFinance) October 4, 2021

The incentive followed the launch of the AB, a cross-chain bridging technology that transfers assets between blockchains.

The Avalanche Rush, in combination with AB, is supposed to deliver strong liquidity incentives and a seamless user experience for protocols within the ecosystem.

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