Aave's Market on the Polygon sidechain
The community’s first exploration of new frontiers (i.e., networks) for the Aave Protocol was V2 market launch on Polygon. A scalable sidechain of Ethereum that allows for fast and low fee transactions with a nascent ecosystem of applications including community favourite Aavegotchi, decentralised exchange Quickswap as well as Chainlink oracles.
Nearly a hundred validators secure Polygon's Proof-of-Stake algorithm with back ups occurring every 30 minutes on the Ethereum blockchain.
Following huge success of V2 markets, V3 of the Aave Protocol has been deployed on Polygon.
The price update frequency results from the liquidation strategy. We follow a margin method, in which prices are refreshed every time the deviation crosses a certain threshold. We use Chainlink’s decentralised oracles for the price feeds.
Both Aave V2 and V3 markets are controlled via the Aave Governance via Aave Cross Chain Governance bridge.