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This Monday, January 31st, the DeFi sector got its first cross-chain governance proposal, passed on a lending and borrowing platform, Aave (AAVE). The project’s developers have already used the new system. The proposal executed on Aave (which was built on Ethereum) was sent to FxPortal on Polygon (MATIC).
After that, the mechanism read the Ethereum data, and it passed it for validation on Polygon’s network. Following the validation, Aave’s cross-chain governance bridge contract managed to receive this data, decode it, and queue the action, awaiting a timelock for finalization.
A big step in achieving interoperability
The Aave team commented on the new development, saying that the cross-chain governance bridge was developed in a generic way in order to be compatible with any chain that supports the EVM and cross-chain messaging.
The team also said that it sees this as a major step forward when it comes to a multi-chain governance system. For now, the list of new assets includes GHST, BAL, CRV, DPI, LINK, and SUSHI.
At this time, the repository only supports contracts that are bridging to Arbitrum and Polygon. Meanwhile, on Aave itself, users can submit AIPs (Aave Improvement Protocols) and use them to target different features on the platform. For example, back in October, AIP was submitted by the Gauntlet Network that had the goal of disabling and borrowing features and functions for xSUSHI and DeFi Pulse Index tokens, as well as an AMM liquidity provider token pair.
The reason that was given included alleged security vulnerabilities. During the next four days, the community voted, and the proposal received 710,327 votes in favor, resulting in it being passed.
A number of blockchain enthusiasts are already celebrating the new technological milestone across various social networks, as interoperability is one of the biggest goals of the crypto industry at this time. However, not everyone is as excited about the cross-chain developments.
Ethereum’s co-founder sees big problems with the new tech milestone
Only a month ago, Ethereum’s co-founder and developer, Vitalik Buterin, gave thumbs down to cross-chain applications, causing a fair bit of criticism and surprise in the crypto industry. However, Buterin noted that there is a possibility of irreversible breaches if a 51% attack takes place on one of the networks during cross-chain transactions.
Furthermore, Buterin also warned the community that scaling of cross-chain applications could also result in scaling the vulnerabilities. According to him, hackers might be able to cause system-wide contagions through 51% of attacks within a single network, which is still more than possible when it comes to small-cap networks.
Despite Buterin’s warnings, there is still a fair bit of excitement in the crypto community. As mentioned, interoperability among chains has been a major goal that signals the development of Web 3.0, and while it is still imperfect and there are dangers to it, it might be possible to come up with measures to prevent the misuse of these new systems.
To learn more about this token visit our Investing in Aave guide.
Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.