Aave, Defi’s biggest lending platform with a TVL of nearly $12 billion, is now operating on ZKsync Era, an Ethereum L2 network that accelerates transactions employing zero-knowledge technology.

Aave V3 is now available on every L2 platform, with over $850 million in TVL. It aims to provide liquidity and yields to the emerging ZKsync DeFi sector. Chainlink will supply price feeds to ensure reliable and consistent data across all of Aave’s chains.

Even during bearish trends in other cryptocurrencies, Aave’s token has risen nearly 50% in the past 30 days. This, therefore, underscores the potential for private DeFi. Particularly as ZKsync improves privacy features and integrates with Aave’s flexible, cost-effective money market, we can anticipate significant advancements. Although integrating a top DeFi platform with a ZKP network is complex, the aim is to develop new institutional applications tailored to specific asset classes, risk profiles, and user needs

What to expect from the partnership between Aave and ZKsync

Aave Labs founder and CEO Stani Kulechov said that integrating ZK-proofs with the Elastic Chain platform could help Aave scale, enhance privacy and security, and attract more DeFi users and institutional markets.

The Aave DAO has approved USDC, USDT, WETH, and wstETH as the initial assets of the ZKsync Era. The DAO also stated that Aave users will receive any airdrops from the ZKsync ecosystem through liquidity mining.

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“ZKsync is the most effective and future-oriented scaling solution utilizing ZK-proof technology. With Aave deploying at Era, a broader audience can fully utilize ZKsync,” said Alex Gluchowski, a co-inventor of ZKsync.