Aave Labs is preparing for a major expansion as it proposes deploying Aave V3 on the MegaETH network at mainnet launch. The goal is clear: capture early liquidity, attract high borrowing demand, and establish a strong presence before other major protocols arrive.
The renewed proposal, published on Dec. 8, reopens an earlier governance thread — this time with updated terms and refined parameters that Aave’s risk service providers will finalize.
Aave wants a Day 0 presence on MegaETH
Originally, Aave delayed plans due to unfinished infrastructure on MegaETH, including incomplete Chainlink oracle support. But with the network now approaching mainnet readiness, Aave Labs believes the timing is right for a Day 0 deployment.
The team argues that launching early allows Aave to convert initial network activity into meaningful usage before liquidity becomes fragmented across multiple protocols. The proposed asset list includes both bridged assets like BTC.b, ETH, USDM, and staked tokens such as wstETH, rsETH, ezETH, sUSDe, USDe and native MegaETH assets like MEGA, USDM-Y, and RBT.
Chainlink is expected to have oracle feeds ready by mainnet launch.
Incentives: MegaETH points and MEGA KPI rewards
As part of the collaboration, Aave Labs will receive 30 million MegaETH points, which can be used to incentivize lending and borrowing during the early growth phase. These incentives will follow Aave’s current go-to-market framework.
Users will earn points through the Aave interface on MegaETH, with points redeemable at the end of each two-month season but only for KYC-verified users.
MegaETH is also introducing a 6% MEGA token KPI reserve, which will unlock when Aave meets performance benchmarks defined by its governance. This structure aims to align MegaETH’s long-term growth with Aave’s continued expansion on the new layer-2.
If community consensus is reached, the proposal will move to a snapshot vote before progressing to a full Aave Improvement Proposal (AIP) covering token listings, risk parameters, and oracle addresses.
Aave and MegaETH both building momentum
The proposal arrives during rapid growth for the MegaETH ecosystem. In November, MegaETH’s pre-deposit program initially capped at $250 million ballooned to $1 billion due to overwhelming demand. The buzz reflects strong interest in its real-time, low-latency layer-2 architecture.
Meanwhile, Aave has been rolling out major upgrades of its own. Its V4 roadmap introduces ERC-4626-style vault accounting aimed at simplifying integrations and reducing multichain friction. And on Nov. 20, Aave launched a new retail-focused savings app offering accessible stable yield.
With MegaETH nearing production and Aave preparing foundational updates, the proposed V3 deployment marks the beginning of a deeper partnership one that could shape how both ecosystems scale through 2026.
