Demex Daily #182: Aave Boosts DeFi with Lido Alliance and ZkSync Deployment

What’s Interesting Today:

Aave's community has endorsed a proposal for a specialized deployment of its v3 protocol focused on the Lido ecosystem, aiming to enhance the use of stETH by enabling recursive borrowing strategies. This decision is part of a broader initiative to support the Lido Alliance, a response to competitive pressures from other protocols. Concurrently, Aave is also expanding its footprint by deploying on ZkSync Era, a Layer 2 network, to capitalize on the scalability and cost-efficiency of zk-Rollups. Additional measures approved include the launch of GHO stablecoin on Arbitrum and funding initiatives to strengthen its liquidity framework, underscoring Aave's strategic moves to innovate and expand within the DeFi ecosystem.

Osmosis, a decentralized autonomous organization (DAO) within the Cosmos ecosystem, has voted to adopt a fee-free Bitcoin bridge in collaboration with Nomic. This move is aimed at enhancing interoperability and reducing the friction typically associated with bridging Bitcoin for decentralized finance (DeFi) activities. The adoption is supported by a revenue-sharing agreement with Nomic, which is expected to address revenue generation challenges from bridging operations by aligning protocol revenue with the usage of bridged Bitcoin. This initiative reflects broader efforts to unlock the liquidity of Bitcoin in the digital asset industry.