OKX’s X Layer has become the 21st blockchain to integrate Aave, the dominant decentralized lending protocol that recently surpassed the $1 trillion mark in cumulative lending volume.
Aave, which leads the DeFi lending sector with $23.5 billion in total value locked (TVL), is now live on X Layer, an Ethereum layer-2 blockchain launched by the crypto exchange OKX. This integration marks a significant milestone for the nascent X Layer network, which held approximately $25 million in TVL at the time of the announcement and launched in May 2024.
The move enables users of OKX Wallet and the X Layer network to access Aave’s lending and borrowing services directly, without the need to bridge assets to another chain. “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.
A Solidifies Market Leadership with Historic $1 Trillion Milestone
The integration coincides with Aave achieving a historic industry benchmark. In late February, the protocol’s cumulative lending volume crossed the $1 trillion threshold, a first for any decentralized lending platform.
Aave’s current $23.5 billion in TVL allows users to earn interest on deposits and borrow against crypto collateral instantly. Its market dominance is clear when compared to its closest competitor, Morpho, which holds roughly $10 billion in net deposits. Aave’s TVL is more than three times larger, and its 30-day revenue of over $6.2 million is more than five times Morpho’s, underscoring its entrenched position.
The protocol’s multi-chain strategy is a key driver of its scale. Beyond its deployment on Ethereum, Aave is integrated on more than 20 other chains, including major layer-2s like Arbitrum and Base. This extensive footprint contributes to its $40.4 billion in net deposits across all deployments.
X Layer Enters a Crowded Layer-2 Arena
X Layer’s integration of Aave is a strategic push to grow its own DeFi ecosystem in a highly competitive environment. Like many Ethereum layer-2 solutions, X Layer prioritizes scalability and low cost, reporting average transaction fees of $0.0005 and one-second block times.
Prior to Aave, X Layer had already attracted other major DeFi blue chips, including Uniswap for decentralized exchanges, Chainlink for oracle services, and Stargate for cross-chain liquidity transfers. Adding Aave, the sector’s flagship lending protocol, represents a major step in building a comprehensive on-chain financial hub.
For a chain with a modest $25 million in TVL, hosting Aave provides immediate utility and credibility, potentially drawing users from Aave’s existing multi-chain user base to explore X Layer’s low-fee environment.
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