The AAVE project has recently announced a proposal to deploy its DeFi infrastructure on the Solana network, utilizing the Neon EVM project from Neon Foundation. Neon EVM is an Ethereum Virtual Machine (EVM)-compatible solution built on the Solana blockchain, which has been in development since 2021 and launched a testnet in 2023.
The primary goal of Neon EVM is to be the first parallelized EVM environment with direct access to Solana’s liquidity. It enables developers to deploy Ethereum decentralized applications (dApps) on the Solana network without modifying their codebase, taking advantage of low fees, fast transaction speeds, and parallel execution capabilities.
The proposal aims for AAVE, a prominent player in the decentralized lending space (DeFi) across various EVM networks, to expand its reach to Solana through a partnership with Neon EVM. AAVE plans to implement its AAVE V3 version on Solana using the features of Neon EVM, allowing Solana users to access the leading lending protocol without significant code reconfiguration.
Neon EVM acts as a bridge between Ethereum transactions and the Solana blockchain, facilitating direct communication between applications deployed on Neon EVM and Solana, as well as other EVM-compatible networks. The collaboration between AAVE, Solana, and Neon EVM is expected to bring mutual benefits, positioning AAVE to capture a share of the DeFi market on Solana and providing Solana with a renowned DeFi protocol.
The implementation of AAVE V3 on Neon EVM is anticipated to reduce costs and improve scalability compared to traditional EVM networks. This partnership could mark the beginning of greater diversification and growth in the DeFi ecosystem, attracting new participants and fostering adoption and innovation in the field. It is essential to note that the proposal is in its early stages and will require community participation and approval before implementation.