Leading decentralised finance (DeFi) platform Aave has successfully passed a cross-chain governance proposal on its network, the first one in the DeFi industry.
In what is being hailed as a significant step forward in creation of multi-chain governance systems, the leading decentralised lending and borrowing platform, Aave (AAVE), has successfully passed the first-ever cross-chain governance proposal of the DeFi industry.
As informed by Aave’s developers, they have tested the system by successfully executing a proposal through a cross-chain bridge with Polygon. A proposal created and executed on the Aave platform, which is developed and deployed on the Ethereum blockchain, was sent to Polygon’s Fx-Portal, from where it was read and forwarded to the Polygon network for validation.
Thereafter, the resulting data was received and decoded by Aave’s cross-chain governance bridge contract, followed by queueing it up in a time-lock, for finalization on the Ethereum blockchain. The proposal had successfully updated the Aave Polygon Market at the time of reporting this news story. The newly-listed digital assets on the platform included Aavegotchi (GHST), Curve DAO Token (CRV), Balancer (BAL), SushiSwap (SUSHI), Chainlink (LINK) and DeFi Pulse Index (DPI).
A major step in accomplishing interoperability between different blockchains
Throwing more light on the process, Aave’s development team informed via one of their many event-related tweets, “The Aave cross-chain governance bridge is built in a generic way to be easily adapted to operate with any chain that supports the EVM (Ethereum Virtual Machine) and cross-chain messaging. Currently, examples for Polygon and Arbitrum exist in the repository and contributions are welcome.”
They further said, “It’s a significant advancement in multi-chain governance systems.”
But not everyone’s going gung-ho
A large number of blockchain enthusiasts are celebrating this technological milestone, on various social media portals. This is especially because blockchain interoperability is one of the biggest focus areas of the crypto and blockchain industry right now. However, not everyone is as pleased as all of them. For instance, Ethereum’s co-founder and developer Vitalik Buterin had given a big thumbs down to cross-chain apps some time ago, citing serious security concerns.
As per Vitalik, scaling cross-chain apps may also scale-up vulnerabilities, potentially enabling hackers to launch system-wide contagions by manipulating just one network, especially small-cap ones.