Popular lending protocol Aave launched its “most significant upgrade to the Aave Protocol,” Aave v3 on Ethereum.
The Aave community gained access to new technical features and advantages with the launch of V3 on Ethereum mainnet, Aave’s first and biggest market. The initial deployment supports seven assets including wrapped bitcoin, wrapped ether, wrapped staked ether, USDC, DAI, link, and aave.
One such feature is the High-Efficiency Mode, which enables users to increase their capital efficiency when lending and lending correlated assets like stablecoins and liquid staking derivates (LSDs).
Another feature is Isolation Mode, which increases the number of assets that can be listed on Aave as collateral while preserving protocol security. By listing assets in isolation mode, liquidity risks can be segregated.
Gas Optimization, which cuts the gas expenses related to all of the functions by about 20–25% is yet another advantage of this launch.
A vote was open for the Aave community which ended on Jan. 26, 2023 receiving 706,258 AAVE tokens, making 100% votes in favor of the proposal of deployment on Ethereum.
Stani Kulechov, Founder and CEO of Aave, stated “The most exciting aspect of V3 is its flexible design, which enables a variety of new risk mitigation features, and its improved capital efficiency & decentralized liquidity – all while reducing gas costs.”
Last March, Aave’s v3 went live on mainnet with 6 networks including Polygon, Fantom, Avalanche, Arbitrum, Optimism, and Harmony. To access the protocol, developers have integrated a new range of crypto wallets and access points such as Instadapp, Debank, 1inch Network, Paraswap, Zapper, DeFi Saver, Zerion, and others.