Aave’s Strategic Expansion to Sonic Blockchain Boosts DeFi Growth and Revenue Models

• Aave deploys V3 on Sonic, expanding to a high-performance blockchain with $15M in liquidity.
• Sonic Blockchain’s innovative revenue-sharing model enhances Aave’s DeFi reach.
• Aave’s expansion to Sonic marks its first Layer 1 move in 2025, strengthening its position.

Aave, one of the leading decentralized finance (DeFi) platforms, established its lending markets on the Sonic blockchain. The protocol started its first layer 1 expansion in 2025. Aave executed the deployment through a governance vote led by the Aave Chan Initiative as its vital contributor group.

After transforming from Fantom to Sonic the platform began operating and achieved mainnet activation in December 2024. The blockchain operates with over $700 million of total value locked (TVL). The new integration allows users to lend and borrow $USDC, $WETH, and $wS tokens within the Sonic blockchain. Aave connects Version 3 (V3) features with their efficiency mode and gas optimization capabilities to this high-performance network. 

Through its fee monetization model, Sonic enables Aave to receive part of all transaction fees, which creates additional potential revenue options. According to Aave Labs founder Stani Kulechov, Sonic’s innovative approach and proficient team abilities were key factors in this expansion.

Liquidity Support Boosts Aave’s Sonic Deployment

Sonic Labs and Aave have dedicated substantial funding resources to establish this launch. Sonic Foundation introduces $15 million in incentives and a maximum of 50 million Sonic-native $S token. Aave uses $800,000 of stablecoins to promote platform liquidity and attract users to migrate from other platforms. The allocated funds aim to attract participants and establish stable market operations.

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This strategic partnership helps Aave achieve stronger leadership within the DeFi ecosystem.  Aave’s growth strategy aligns with Sonic blockchain’s revenue-sharing mechanism which provides a monetizable structure for decentralized protocols. The platform allows users to supply assets and borrow funds while earning incentives, which resembles how Aave operates across the Ethereum, Arbitrum and Avalanche markets. The TVL (Total Value Locked) of assets across Aave’s network stands at $19 billion due to widespread adoption across supported networks.

Shift in Aave’s Focus Following Polygon Move

Aave moved into Sonic blockchain following its governance decision to stop lending services on Polygon’s Proof of Stake chain. The decision emerged from risk concerns tied to a rejected Polygon proposal concerning stablecoin rehypothecation. Kulechov highlighted that risk management became the community’s priority since they relied on open discussion to determine outcomes. Aave ceased Polygon operations even though the proposal was rejected prioritizing stability.

Aave demonstrated its capacity to adjust its strategy because of shifts in the DeFi market. The Ethereum-based protocol launched in 2018 has expanded its operation across various Layer 1 and 2 networks. Sonic’s integration allows Aave to access a developing blockchain platform and gain support from a strong community. DeFi’s growing popularity enables Aave to enhance its product range while maintaining its security as the top decentralized lending platform.