The first proposal for cross-chain governance passes on Aave

On Monday, the first cross-chain governance proposal passed on decentralized finance, or DeFi, borrowing and lending platform Aave. Accor...



On Monday, the first cross-chain governance proposal passed on decentralized finance, or DeFi, borrowing and lending platform Aave. According to for DeFi Llama, the amount of total value locked on Aave is around $12 billion. As its developers said, a proposal running on Aave, which is built on Ethereum (ETH) network, was sent to the Polygon (MATIC) Fx Portal. The mechanism then reads the Ethereum data and transmits it for validation on the Polygon network.

Then, the Aave cross-chain governance bridge contract receives this data, decodes it, and queues the action waiting for a timeout to complete. The development team wrote:

The Aave Cross-Chain Governance Bridge is generically built to be easily adapted to work with any chain that supports EVM [Ethereum Virtual Machine] and cross-chain messaging.

Currently, the deposit supports transition contracts to Polygon and Arbitrum. On Aave, users can submit Aave Improvement Protocols, or AIPs, to target various features on the DeFi platform. In one case last October, Gauntlet Network submitted an AIP to disable borrowing features for xSUSHI and DeFi Pulse Index tokens and a pair of automated market maker liquidity provider tokens, citing alleged security vulnerabilities. Proposal pass with 710,327 upvotes four days after submission.

While some blockchain enthusiasts took to social media to celebrate the technology milestone, not all stakeholders are fans of the cross-chain developments. Last month, Vitalik Buterin gave the famous thumbs down to cross-chain applications, citing irreversible breaches if a 51% attack occurs on a network in the midst of cross-chain transactions. Additionally, the Ethereum co-founder warned that scaling cross-chain applications could also scale vulnerabilities, as hackers can cause system-wide contagions by launching attacks at 51 % on a single network, especially against small caps.