The Avalanche Foundation has proposed the integration of the Aave Protocol into Avalanche, a fast smart contracts platform ideal for DeFi applications. The foundation believes that this deployment will benefit the Aave ecosystem due to Avalanche's scalability, high throughput, and near-instant finality. The Avalanche Rush program has allocated up to $20M AVAX for Aave protocol users over a three-month period, which is expected to attract new users and expand the Aave community. The proposal has received positive feedback from users, with many expressing excitement for the AVAX deployment.

The Avalanche Foundation insists that all deployments of the Aave protocol should be voted on by Aave governance prior to deployment. The next steps include creating a Snapshot vote for the Aave community to signal their approval or disapproval for the deployment on Avalanche, and the deployment of smart contracts in Avalanche C-Chain. The post also provides a list of initial assets and configurations of the deployment, including WAVAX, WETH, WBTC, AAVE, DAI, USDT, and USDC, with details on their usage as collateral, LTV, liquidation threshold, borrowing status, stable rate status, liquidation bonus, and reserve factor.

The discussion also delves into the reasoning behind different risk parameters for an asset across networks. Asset liquidity is fragmented across networks, and large volume exchanges during liquidations could lead to high slippage and cascading liquidations. Despite these explanations, some users expressed concern about the low LTV for wBTC on Avalanche. A snapshot vote has been created to validate the asset list for Aave's deployment on Avalanche. The proposal has received widespread support from the community, with many users expressing their positive experiences with AVAX and the potential benefits of the integration.