Aave, the largest decentralized lending protocol by total value locked, has officially launched on X Layer, an Ethereum layer-2 blockchain operated by crypto trading platform OKX. The deployment represents a notable development for X Layer, which currently holds just $25 million in total value locked since its launch in 2024. Users of the OKX Wallet and the X Layer network can now lend, borrow, and earn yield directly on the chain without needing to transfer assets to another network.
An OKX spokesperson described the integration as a broad expansion of the platform’s decentralized finance ecosystem, stating it should benefit the full range of customers on X Layer. The move adds a major protocol to a relatively young blockchain that entered a competitive market when it went live in May 2024. X Layer positions itself around scalability, offering average transaction costs of $0.0005 and one-second block confirmation times.
X Layer already hosts several other prominent DeFi platforms. These include Uniswap for decentralized token swaps, Chainlink for oracle data services, and Stargate for cross-chain money transfers. The addition of Aave further deepens the financial infrastructure available to users on the network.
The integration follows a significant milestone for Aave, which surpassed $1 trillion in cumulative lending volume in late February, marking a first for the decentralized lending industry. Aave currently secures $23.5 billion in total value locked, allowing users to earn interest on crypto deposits and borrow against their holdings as collateral. The protocol is active on more than 20 blockchain networks, including Ethereum, Arbitrum, and Base.
Aave’s dominance in the DeFi lending sector is underscored by its lead over rivals. Its $23.5 billion in total value locked is more than three times that of its closest competitor, Morpho, which holds around $10 billion in net deposits compared to Aave’s $40.4 billion. Over the past 30 days, Aave has also generated more than $6.2 million in revenue, a figure more than five times greater than second-place Morpho’s earnings over the same period.
The expansion onto X Layer reflects Aave’s continued strategy of deploying across a wide range of blockchain environments to capture additional users and liquidity. For X Layer, securing a protocol of Aave’s scale could help attract greater activity to a network that has so far seen limited traction relative to more established layer-2 competitors. Both platforms stand to benefit from increased user engagement and capital flows resulting from the partnership.
Originally reported by CoinTelegraph.
