DeFi lender Aave launches on OKX’s Ethereum L2, X Layer

Aave, the largest decentralized lending protocol with $23.5 billion in total value locked, has launched on X Layer, an Ethereum layer-2 blockchain launched by crypto trading platform OKX. 

It marks a milestone for X Layer, a blockchain with just $25 million in total value locked, which launched in 2024. The integration would allow OKX Wallet and X Layer users to lend, borrow and earn yield without needing to bridge out to another chain. 

“This is a very versatile expansion of our DeFi ecosystem and as such should benefit the full range of customers we have on X Layer,” an OKX spokesperson told Cointelegraph. 

X Layer launched in May 2024 in a highly crowded Ethereum layer-2 market. Like many of its competitors, X Layer is focused on scalability, offering $0.0005 transactions on average at one-second block times.

Other notable DeFi platforms integrated on X Layer include Uniswap for decentralized swaps, Chainlink for oracle services and Stargate for cross-chain money transfers.

Aave recently crossed a historic milestone

The launch comes after Aave surpassed $1 trillion in cumulative lending volume in late February, an industry first.

The protocol currently holds about $23.5 billion in total value locked and operates across more than 20 chains, including Ethereum, Arbitrum and Base. It also has over $40.4 billion in net deposits, compared with roughly $10 billion on rival platform Morpho.

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The $23.5 billion figure is more than three times Aave’s closest competitor, Morpho, in the DeFi lending market.

Aave has also taken in over $6.2 million in revenue over the last 30 days, more than five times that of second-place Morpho.

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