Aave <> StarkNet Phase I. Release

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The Aave and StarkNet project, led by Eboado, has completed its first phase, establishing a smart contract infrastructure that allows users to deposit on Aave v2 Ethereum from StarkNet without Ethereum transaction costs. The project has expanded Aave's user base, created new monetization models, and tested Aave software on a non-EVM network, with a forthcoming Aave Governance proposal to activate a bridge for three assets: DAI, USDC, and USDT.

The Aave and StarkNet project, led by Eboado, has successfully completed its first phase. The project aimed to establish an infrastructure of smart contracts, enabling users and applications to deposit on Aave v2 Ethereum from StarkNet without transacting on Ethereum. This system allows liquidity providers to bridge their Aave v2 Ethereum aTokens via the Aave-StarkNet bridge to/from StarkNet, and StarkNet users can purchase the StarkNet aToken representations without being subjected to Ethereum transaction costs. The system also allows holders of aTokens on StarkNet to accrue AAVE rewards over time and claim AAVE on Ethereum when they choose to1.

The project has achieved several goals, including expanding Aave's user base, creating new monetization models for liquidity providers, and testing Aave software on a non-EVM network. The system interacts via smart contracts, which will become operative once an upcoming Aave governance proposal activates the system. The Aave-StarkNet bridge allows for programmatic interaction and application integration via a TypeScript (TS) library, with the bridge controlled by Aave Governance smart contracts on Ethereum1.

The project has undergone rigorous security measures, both internal and external, involving three security firms: Certora, Nethermind, and Peckshield. The initial budget for the project was estimated at $385,000, with actual expenses totaling approximately $261,300. After a 50/50% split with Starkware, about $70,000 will be returned to the Aave collector1. Future improvements may include bridging based on storage proofs, expanding to non-Ethereum networks, and adapting to Aave v3. The next step is to propose the final Phase II to the Aave community for approval1.

Eboado has announced a forthcoming Aave Governance proposal for the Aave community to vote on the activation of a bridge. The proposal includes deploying the L1 side of the bridge and activating the system with initial enablement of 3 assets: DAI, USDC, and USDT. Each asset will have a deposit ceiling of 30,0001. The proposal to activate the Aave-Starknet Aave v2 Ethereum aToken Bridge is now open for voting2. If approved, the Bridge contract will be active. In response to concerns about risk management, Eboado clarified that the initial proposal activates only 3 assets with a total deposit cap of 30,000 each, which can be increased later, providing reasonable risk management5.

Posted a year ago

Last reply a year ago

Summary updated 2 months ago

Last updated 05/12 01:14