Popular lending protocol On the Ethereum blockchain, the “most major improvement to the Aave Protocol” (Aave v3) was released by Aave.
With the introduction of V3 on the Ethereum mainnet, Aave’s first and largest market, the Aave community now has access to additional technological capabilities and benefits. Seven assets, including wrapped bitcoin, wrapped ether, wrapped staked ether, USDC, DAI, link, and aave, are supported in the first deployment.
The High-Efficiency Mode is one of these features, allowing users to boost their capital efficiency while lending and lending correlated assets like stablecoins and liquid staking derivates (LSDs).
Isolation Mode is another feature that expands the pool of assets that may be placed on Aave as collateral while maintaining protocol security. Liquidity concerns may be divided by listing assets in isolation mode.
Another benefit of this launch is Gas Optimization, which reduces the gas costs associated with all of the operations by around 20–25%.
The Aave community had a vote, which was closed on January 26, 2023, with 706,258 AAVE tokens received, resulting in a unanimous vote in support of the plan to deploy on Ethereum.
The most intriguing component of V3 is its flexible architecture, which allows a number of new risk mitigation measures, as well as its increased capital efficiency & decentralized liquidity – all while decreasing gas prices, according to Stani Kulechov, founder & CEO of Aave.
Six networks, including Polygon, Fantom, Avalanche, Arbitrum, Optimism, and Harmony, were part of Aave’s v3 launch in March of last year. Developers have incorporated a new selection of cryptocurrency wallets and access points, including Instadapp, Debank, 1inch Network, Paraswap, Zapper, DeFi Saver, Zerion, and others, to allow users to access the protocol.
Compiled by Coinbold
