Aave has deployed its third version, Aave Protocol V3, on the Ethereum mainnet.
The decentralized lending protocol Aave has been one of the most prominent in the DeFi ecosystem.
Currently, Aave ranks fourth among decentralized protocols with the most liquidity. According to data from the DeFi platform Llama, the total liquidity deposited in Aave contracts exceeds $ 4.550 million dollars, at the time of writing this article.
This protocol has served as a gateway to thousands of investors looking to explore the blockchain-based decentralized ecosystem, while revolutionizing the lending sector.
Now, with the release of its third version, Aave Protocol V3, the developers of this decentralized lending protocol want to optimize its functions, introduce new features, and increase capital efficiency.
Aave 3rd version is available on Ethereum mainnet
After several months of testing, the third version of Aave Protocol is now available on the Ethereum blockchain. From their blog, the developers published a release informing its community of users and investors that the V3 version of the protocol was successfully implemented on Aave’s first and largest market.
The launch took place last Friday, January 27, after approval by the protocol's governance.
With this release, Aave opened the doors to new features and functionalities focused on improve capital efficiency, promote liquidity decentralization and mitigate potential risks.
Aave Protocol V3 was audited by several cybersecurity companies including Sigma Prime, Trail of Bits, Open Zeppelin, ABDK, and PeckShield and was launched on public testnets a year ago in January 2022.
What does Aave Protocol V3 bring?
Aave Protocol V3 integrates a flexible architecture that allows the protocol to have greater composability, making it possible to create a wide variety of new and innovative features on it, the developers indicated.
For example, Aave Protocol V3 integrates new risk management tools, such as Supply and lending limits, which provide greater security and stability to users, traders and investors.
Also, to optimize capital efficiency, Aave Protocol V3 has incorporated a New high-efficiency mode, called “E-Mode”, with which users can extract the most out of their collateral deposited in the protocol. Through E-Mode, Aave users have greater borrowing power when the collateral they provide is correlated to the asset they are depositing, the protocol explained on its blog.
Furthermore, with a focus on accessibility and decentralized liquidity, Aave Protocol V3 integrates a gas optimizer, which allows users to reduce gas fees by up to 25%, improving the accessibility of the lending protocol. Flash Loan users can make use of a simplified Flash Loan feature in Aave V3 to enable lower-cost or minimized gas cost interactions.
Aave Protocol V3 also includes a isolation mode with which users can list more digital assets in order to access less liquid assets without jeopardizing the stability of the main market.
To facilitate the migration of assets from the V2 version of the protocol to the new V3 version, Aave developers have created a migration tool that makes it easier for users to move their positions between both versions.
All these new features and functions integrated into Aave V3 point towards the growth and development of the protocol and its community.
Continue reading: Lens Protocol, Aave's initiative to promote native social networks on the Web3
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