Aave Expands DeFi Presence to X Layer, OKX's Ethereum Layer-2 Network
X Layer becomes the 21st network to support Aave, the DeFi lending protocol that recently achieved over $1 trillion in total cumulative lending volume.
The leading decentralized lending protocol Aave, which currently holds $23.5 billion in total value locked, has gone live on X Layer, the Ethereum layer-2 blockchain developed and deployed by cryptocurrency exchange platform OKX.
The deployment represents a major achievement for X Layer, a network that holds merely $25 million in total value locked and was introduced to the market in 2024. Through this integration, users of both OKX Wallet and X Layer will gain the ability to participate in lending, borrowing and generating yield directly on the network without requiring cross-chain bridging to alternative platforms.
"This is a very versatile expansion of our DeFi ecosystem and as such should benefit the full range of customers we have on X Layer," an OKX spokesperson told Cointelegraph.
The X Layer network made its debut in May 2024, entering an increasingly competitive landscape of Ethereum layer-2 solutions. Similar to competing platforms, X Layer prioritizes scalability as a core feature, delivering transactions that cost approximately $0.0005 on average while maintaining one-second block times for rapid confirmation.
Additional prominent DeFi applications already integrated within the X Layer ecosystem include Uniswap for facilitating decentralized token swaps, Chainlink for providing oracle services and Stargate for enabling cross-chain money transfers.
Aave recently crossed a historic milestone
This integration arrives on the heels of Aave achieving the unprecedented $1 trillion threshold in cumulative lending volume during the final days of February, establishing the protocol as the first in the industry to reach this benchmark.
With $23.5 billion in total value locked, Aave provides users with opportunities to generate interest on their deposited assets and access instant borrowing services by utilizing cryptocurrency as collateral.
The protocol currently operates across more than 20 different blockchains, including major networks such as Ethereum, Arbitrum and Base, and has accumulated over $40.4 billion worth of net deposits on the platform compared to Morpho's $10 billion.
This $23.5 billion total value locked figure represents more than triple the amount held by Aave's nearest competitor, Morpho, within the decentralized finance lending sector.
Additionally, Aave has generated over $6.2 million in revenue throughout the last 30 days, representing more than five times the revenue of second-place Morpho.