Aave Labs has proposed deploying Aave V3 on MegaETH at mainnet launch to capture early liquidity and borrowing demand.
Summary
- Aave Labs reopened its ARFC to deploy Aave V3 on MegaETH at Day 0.
- Incentives include 30M MegaETH points and a 6% MEGA KPI reserve.
- Proposal follows MegaETH’s $1B pre-deposit event and Aave’s recent product updates.
Aave Labs has submitted a new governance proposal to launch Aave V3 on MegaETH at mainnet Day 0, aiming to draw fast user growth, deep liquidity, and strong borrowing demand.
The Dec. 8 proposal reopens an earlier discussion to prepare a V3 deployment on MegaETH with updated terms to be finalized by Aave’s risk service providers.
Aave aims for Day 0 presence on MegaETH
Although the original thread stated that MegaETH was still finishing up important infrastructure, like Chainlink oracles, recent developments and the impending mainnet release have prompted Aave (AAVE) Labs to reintroduce the plan.
Aave Labs says deploying on MegaETH at launch can convert early network activity into meaningful protocol usage. First-mover positioning, according to the team, attracts supply and borrowing demand before liquidity becomes dispersed across several protocols.
Both bridged and native tokens are included in the original asset list. Bridged assets range from BTC.b, ETH, and USDM to synthetic and staked assets such as wstETH, ezETH, rsETH, USDe, and sUSDe. Native assets include MEGA, USDM-Y, and RBT. Chainlink is building oracle support to be ready for mainnet Day 0.
Incentives and KPI-based rewards
Aave Labs is set to receive 30 million MegaETH points, which may be used as incentives for lending and borrowing activity on the new market. These rewards will follow Aave’s existing go-to-market rules. Users will earn points through the interface, while redemption will occur on MegaETH’s platform at the end of each two-month season. Only KYC-verified users will be eligible.
MegaETH will also allocate 6% of the MEGA token supply to a KPI framework defined by Aave governance. These tokens provide a structured route for long-term alignment between the protocol and the new layer-2 network, and they unlock when Aave meets performance benchmarks established by the DAO.
The proposal will proceed to a snapshot vote and an AIP with final token listings, oracle addresses, and risk parameters if governance reaches a consensus.
Recent context around Aave and MegaETH
The proposal comes during a period of rising activity in the MegaETH ecosystem. In late November, the network launched a large pre-deposit program with a $250 million cap that expanded to $1 billion due to demand. The event increased attention on MegaETH’s real-time layer-2 design and its near-web2 responsiveness goals.
Aave has also been busy. The protocol has introduced its V4 roadmap, which will move to ERC-4626-style vault accounting for simpler integrations and reduced multichain friction. On Nov. 20, Aave launched a new savings app designed for retail users, making it easier for people to access stable yield opportunities.
With MegaETH nearing its production phase and Aave gearing up for some significant upgrades, the upcoming V3 release is paving the way for even closer collaboration between the two ecosystems as they both scale into 2026.
