Aave is checking in with its community about a potential launch on the Bitcoin layer-2 network called Spiderchain. This network was developed by Botanix Labs, and it's designed to work well with other networks using the Ethereum Virtual Machine (EVM).
As the biggest decentralized finance (DeFi) lending platform out there, Aave wants to know how its users feel about this move. The Aave-Chain Initiative (ACI) has put out a call for feedback on Botanix Labs' proposal. They aim to expand Aave's reach with over $17 billion currently locked in the growing Bitcoin DeFi space.
This idea of launching on a Bitcoin layer-2 network shows a strong desire to bring popular features from other parts of the crypto world to Bitcoin. Recently, Bitcoin (BTC) prices shot up past $90,000 for the first time, hitting an all-time high of $93,445. Its market dominance is now at 61.38%. This surge might attract developers from other networks eager to tap into the substantial reserves held in BTC.
Botanix Labs created Spiderchain to ensure it can work with Ethereum-based protocols, meaning any application built on Ethereum could easily interact with Bitcoin.
Once the community shares its thoughts, the protocol will need to address any security risks. However, ACI hasn’t given a timeline for this process yet.
In the last 24 hours, Aave's native token (AAVE) dropped nearly 8%, falling to just under $168, according to CoinDesk Indices. This decline likely reflects a broader pullback in the crypto market following Bitcoin's recent rise above $90,000 on Wednesday.