Aave V3 Launches on Celo, Offering Sub-Cent Transaction Costs

Aave V3, the decentralized non-custodial liquidity protocol, has been successfully launched on Celo, a Layer-2 solution designed to facilitate fast and low-cost transactions for real-world applications. This integration allows Celo’s global builders and users to borrow, lend, and earn yield with transaction costs as low as sub-cent. The deployment also benefits from Celo’s one-block finality and one-second transaction time, which will be fully realized following its migration to an Ethereum Layer 2 later this month.

The initial deployment supports a range of collateral and borrowable assets, including CELO, USDT, and USDC, with the potential for future expansion to include Celo’s native stablecoins. This move is a result of the Aave community’s support for bringing the protocol to the mobile-first ecosystem of Celo. Isha Varshney, Head of Ecosystem at the Celo Foundation, emphasized that this launch is a significant step towards delivering accessible and efficient financial tools to individuals and communities worldwide. The Celo team is committed to expanding DeFi accessibility globally.

Stani Kulechov, Founder of Aave Labs, highlighted that the deployment of Aave on Celo could attract a large community of new users to the Aave ecosystem. This integration is expected to bring mobile-first users in emerging markets and connect real-world assets to DeFi, potentially accelerating the use of stablecoins for simple transactions. For Celo users, this integration provides access to a DeFi lending protocol, boosted liquidity, new yield-bearing avenues, and accelerated DeFi adoption in emerging markets.

Meanwhile, Aave users gain access to Celo’s mobile-first user base, including emerging market retail users, and can benefit from low transaction costs and fast settlements. The integration was deployed by BGD Labs on behalf of Aave DAO, with risk analysis from Chaos Labs and secure price feeds provided by Chainlink. Marek Olszewski, Celo co-founder and cLabs CEO, noted that Aave’s decentralized, non-custodial protocol aligns with Celo’s mission to create the conditions of prosperity for all, serving as an entry point to crypto for millions of users worldwide. This integration accelerates the joint vision for a more equitable and sustainable digital economy.