Aave Gauges Community Interest for Expansion to Bitcoin Layer 2 Spiderchain

As a seasoned crypto investor with a knack for spotting promising opportunities, I find this Aave-Spiderchain collaboration intriguing. Having witnessed the explosive growth of DeFi and the dominance of Bitcoin, it’s clear that bridging these two worlds could be a game-changer.

Aave, the leading decentralized-finance (DeFi) lending service, is reaching out to its community to determine the level of enthusiasm for potentially integrating with the Bitcoin layer-2 network, Spiderchain.

Regarding the Aave-Chain Initiative (ACI), they recently issued a request for feedback concerning a plan proposed by Botanix Labs, a Spiderchain developer, to enlarge the lending platform, with over $17 billion in assets secured across the rapidly growing Bitcoin DeFi sector.

Moving functionality typically found in other cryptocurrency environments onto a Bitcoin layer 2 underscores the demand for leveraging Bitcoin’s massive holdings, which currently make up about 61.38% of the crypto market. This week, the value of Bitcoin (BTC) surpassed $90,000 for the first time, hitting an all-time high of $93,445. Developers working on projects from other networks might be interested in tapping into these vast Bitcoin reserves.

Botanix Labs created Spiderchain, a system designed to work seamlessly with applications utilizing Ethereum Virtual Machine (EVM), the software that drives Ethereum and enables smart contracts. The intention behind this development at Botanix is to make it possible for any application initially based on Ethereum to also operate on Bitcoin.

Once we collect feedback, it’s crucial to spot and handle any potential security issues that may arise. However, ACI hasn’t provided a specific timeline for when this task will be completed.

The price of AAVE, Aave’s native token, has decreased by approximately 8% over the past day, now hovering around $168. This decline might be a result of the general downtrend observed across the cryptocurrency market following Bitcoin’s jump above $90,000 on Wednesday.