The Aave protocol released its version 3, or V3, and released it in January 2017. It said this is the most significant update. This version emphasizes risk management and capital efficiency. So far, Aave V3 has been implemented on different networks, such as Polygon, Arbitrum, Optimism and Avalanche, except Ethereum. However, the Ethereum blockchain is the first and largest market for the Aave protocol. Now, after several years, Aave finally decides to implement its version 3 on the smart contracts platform.
V3 implementation is subject to community vote
Currently, all participating AAVE token holders are welcome to give their thoughts on the upcoming V3 launch. Until January 25, 2023, 18:58 UTC, vote for the arrival of V3 of the protocol on Ethereum. If the Aave community agrees to this distribution, it will take place on Friday, January 27th. CoinDesk reported this information in an article published on January 24th. The day before, via a tweet, Aave had presented the V3 to be launched on the Ethereum API mainnet.
Aave V3 aims to improve risk management, user experience and capital efficiency. Could improve lending and lending markets for staked ether from the Lido. This was reported by Kethfinex, spokesman for Lido, one of the main Ethereum DeFi protocols. The spokesperson argued:This is a big step forward for the Ethereum DeFi space“.
Features coming to Ethereum with V3
V3 will bring efficiency mode, or eMode, as a new feature. The assets that will be taken into consideration are: wBTC, wETH, wstETH, USDC, DAI, LINK and AAVE. But you should know that not all features of V3 will be activated from the start of the distribution.
This is for example the case with the isolation mode feature which allows you to borrow certain assets up to a specific debt limit. Additionally, a statement was released on initial interest rate patterns on V3. It seems that these modelsthose on Ethereum V2 assets and other existing V3 instances will follow“.
Currently, Aave is positioned as the largest lender in the DeFi space. The protocol has $3.8 billion in total value locked (TVL) in the Ethereum ecosystem. That said, the announcement of the possible arrival of V3 of Aave on Ethereum is delighting many players, thanks to the upcoming features.
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Far from dampening my enthusiasm, a failed investment in a cryptocurrency in 2017 only increased my enthusiasm. I therefore decided to study and understand the blockchain and its multiple uses and to convey information related to this ecosystem with my pen.