Aave V3 leads to Ethereum Layer 2, Fantom, Avalanche.

Key receivers

Aave V3 launched today. The update focuses on allowing users to move assets between networks while improving capital efficiency and security. It will initially start on Polygon, Phantom, Avalanche, Arbitrum, Optimism, and Harmony. Ave recently released permission pools for institutions and NFT-based lenses.

Share this article

Aave has launched the V3 update. The update will first roll out to Polygon, Fantom, Avalanche, Arbitrum, Optimism and Harmony with Ethereum to follow in the future.

Avevels V3

Ave, one of the largest decentralized finance protocols with over $11 billion in total value locked, has launched its V3 update.

The team behind the popular lending protocol announced the update in a press release on Wednesday. Aave V3 focuses on improving capital efficiency and security by providing a better user experience with a new interface. The team's users will benefit from transparent transaction flows and fast loading times, and the protocol will integrate with the most widely used products in DeFi, including InstaDap, DeBank, 1inch, ParaSwap, Zapper, DeFi Saver and Zerion.

Perhaps most importantly, the update allows users to move assets across different networks. In other words, someone with an arbitrage position on Aave V3 may decide to move the liquid to Optimism with less friction. Aave V3 offers gas bill savings, improved efficiency for borrowers and other features designed to limit risk (including risk hedges and exposure limits for newly listed assets). The update adds features specifically designed to improve the user experience on Ethereum Layer 2.

The updated protocol will initially roll out on Polygon, Phantom, Avalanche, Harmony, and the Layer 2 Optimistic Rollup networks Arbitrum and Optimism. It is also going to be deployed on the Ethereum mainnet sometime in the future. As the protocol itself changes, holders of AAVE tokens vote on which networks the protocol will launch through Aave's Improvement Proposal process.

Polygon founder Sandeep Nilwal called the update “a big milestone,” adding that “more [Polygon’s] It is on a mission to bring DeFi to the next hundred million people.

Aave founder and CEO Stani Kulekov discussed the update with Crypto Briefing, noting that V3 facilitates “Measurement, cross-chain and risk reduction. He added, “The Aave community will develop a strong ecosystem around the protocol and make it more decentralized.

It was Ave V3. Officially presented In November, the group shared its chain plans in a management post. In addition to the V3 update, the flagship DeFi project has had a busy few months despite a broader downturn in the crypto market and a brutal bloodbath in the DeFi space (the AAVE token is struggling with trading over 80% of its peak). Aave launched a DeFi product for institutions in January and has since entered the NFT space with a new social-oriented platform called Lens. It launched a test network for the project on Polygon last month.

Disclosure: At the time of writing, the author of this article owns BTC, ETH and many other cryptocurrencies.

Share this article