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Aave To Boost Governance Efficiency With Chainlink Automation

Chainlink Automation (formerly Keepers) is a decentralized service that allows developers to automate regular smart contract triggers without expending the resources and assuming the risks of performing tasks manually or through centralized systems. By automating vital functions and processes, decentralized protocols can increase efficiency and minimize potential for human error. 

Today, BGD Labs and Chainlink announced that Aave, one of the world’s largest decentralized liquidity protocols, is integrating Chainlink Automation to automate governance actions for Aave Governance V2 and Aave Cross-Chain-Governance on Ethereum mainnet. BGD Labs, a web3 development initiative focused on Aave’s ecosystem, also announced future plans to integrate Automation into Aave Governance V3.

Chainlink Price Feeds have secured billions of dollars across Aave’s deployment on multiple blockchains. In February, Aave also integrated Chainlink Proof of Reserve (PoR) to ensure sufficient collateralization of wrapped assets on the Avalanche network. Johann Eid, VP of Go-To-Market at Chainlink Labs, described Aave’s latest Chainlink integration as a landmark for Aave and the DeFi industry as a whole.

“It’s exciting to work with BGD Labs on another significant milestone for the Aave ecosystem,” he said. “The use cases we’ve built together make a real and lasting impact on Aave governance and the Aave Protocol, which subsequently affects much of DeFi. In BGD, we’ve found someone we can work with to pioneer new and exciting technologies whose foundations stand upon security, transparency, and greater efficiency for end users.”

Chainlink Automation removes unnecessary delays in Aave’s governance processes by reducing the manual steps required to move a contract through Aave’s proposal stages. Automation can determine if a proposal should progress or be canceled and then execute the appropriate action without human intervention.  

In an official announcement, BGD Labs co-founder Ernesto Boado, who previously described Automation’s potential to improve protocols like Aave by “orders of magnitude,” emphasized Chainlink’s essential role in continuing to grow the decentralized economy.

“Automation is a key piece of Web3 infrastructure, and by integrating it, we’re taking advantage of another of Chainlink’s battle-tested Web3 services,” he said. “We look forward to continuing our work together for years to come.”

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