30s Summary

Aave, a DeFi lending platform, is gauging user interest for a potential launch on Spiderchain, a Bitcoin layer-2 network developed by Botanix Labs. Spiderchain is designed to integrate Ethereum-based applications on Bitcoin. The move is seen as reflecting the demand for more extensive crypto features on the original blockchain, especially amidst Bitcoin’s ascendency above $90,000. A timeline for data collection and security risk mitigation has not been established for the protocol. Following Bitcoin’s surge, Aave’s native token, AAVE, fell nearly 8% to just under $168.

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Aave, a top decentralized finance (DeFi) lending platform, is checking if there’s enough interest among its users to launch on Spiderchain, a Bitcoin layer-2 network. Spiderchain was created by Botanix Labs to be compatible with networks using EVM, the software that powers Ethereum and enables smart contracts.

The move to a Bitcoin layer 2 shows that people may want features common in the wider crypto world to be available on the original blockchain, especially as Bitcoin’s price surged above $90,000 this week, reaching an all-time high of $93,445, and its dominance of the crypto industry rose to 61.38%. Other projects might also want to cash in on the large reserves held in BTC.

Spiderchain, which is powered by the Ethereum-compatible Botanix Labs, is designed to be able to work with any Ethereum-based application on Bitcoin. After feedback is collected, the protocol will need to figure out and fix possible security risks. There’s no timeline for this process yet.

Aave’s own token, AAVE, has dropped just under 8% in the last 24 hours to just below $168, likely as part of a larger pullback in the crypto industry following BTC’s surge above $90,000 on Wednesday.