DeFi lending giant Aave launches on OKX's Ethereum L2, X Layer

OKX’s X Layer is the 21st blockchain to integrate Aave, which recently surpassed the $1 trillion mark in cumulative lending volume.

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 significant 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.

The integration comes as Aave surpassed the $1 trillion mark in cumulative lending volume in late February, marking an industry first.

Aave secures $23.5 billion in total value locked, enabling users to earn interest on deposits and borrow instantly using crypto as collateral. Aave is integrated on more than 20 chains, including Ethereum, Arbitrum and Base, and has over $40.4 billion worth of net deposits on the platform compared to Morpho’s $10 billion.

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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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Source: CoinTelegraph