• Aave has deployed the third version of the protocol on the Ethereum mainnet
• Aave V3 introduces new risk mitigation features, improved capital efficiency, and decentralized liquidity
• Aave Protocol V3 is now live on the Ethereum market
Decentralized finance (DeFi) lending and borrowing platform Aave (AAVE) has deployed the third version of the protocol on the Ethereum mainnet, introducing new risk mitigation features, improved capital efficiency, and decentralized liquidity. The Aave DAO voted unanimously in favor of the proposal to deploy Aave V3 on Ethereum.
The latest version of Aave, V3, offers users a variety of new risk mitigation features like High-Efficiency Mode, which allows investors to increase their capital efficiency when staking or borrowing. Isolation Mode allows for more assets to be listed on Aave as collateral while keeping the security of the protocol. The upgrade also focuses on gas optimization and reduces gas costs across all functions by 20-25%.
Aave calls V3 the „most significant upgrade to the Aave protocol“ since its launch in January 2017. It was first deployed on Ethereum Layer-2 networks like Optimism, Polygon, Arbitrum, and Layer-1 blockchain Avalanche. Aave’s governance token AAVE remained flat after V3 was deployed. It’s currently trading at $88.12.
The Aave team is excited to see the new features that V3 brings to the market, with Stani Kulechov, Aave’s Founder and CEO, stating: “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.”
The Aave team is confident that the new version of the protocol will bring more opportunities and advantages to its users. With the deployment of Aave V3 on the Ethereum mainnet, Aave is now ready to provide its users with a more secure and efficient platform.