The new version includes features the developers believe will increase capital efficiency and reduce gas bills.
According to a Jan. 27 Twitter thread by the Aave team, the third version of the cryptocurrency lending app Aave has rolled out to Ethereum for the first time. “Aave v3” was originally released in March 2022 and was deployed on several Ethereum Virtual Machine (EVM) compatible blockchains shortly thereafter. Previously, Ethereum users could only access the older “v2” version of the app.
Aave v3 includes several features designed to help users save money and maximize their capital efficiency. For example, the High Efficiency mode allows borrowers to avoid some of the app’s more stringent risk parameters if their collateral is highly correlated with their loan assets. The developer says this could be useful for borrowers of stablecoins or liquid staking derivatives.
Additionally, the “separate” feature allows certain high-risk assets to be used as collateral, as long as they have their debt ceiling, and are only used for lending the stablecoin. In previous versions, there was no way to restrict the types of assets that could be lent against a particular type of collateral. This meant that coins with low market capitalization and low liquidity often could not be used as collateral.
v3 also includes a gas optimization algorithm that the developers say will reduce gas bills by 20% to 25%.
The v3 code has already been published in November 2021. In March 2022, Aave DAO approved the first vote to deploy the new version. Over the next few months, v3 was rolled out to Avalanche, Arbitrum, Optimism, and Polygon. However, his Ethereum version of Aave has always been the most liquid, and v3 was previously unavailable.
According to the official proposal, there will be only 7 coins for the initial launch. Voting for the launch he started on January 23rd and lasted for two days. Implementation of the proposal was allowed to proceed on January 27 after his supporters won the vote. Fewer than 0.01% of decentralized autonomous organization (DAO) members voted against the proposal.
In November 2022, Aave changed his governance procedures after being hit by his short-term $60 million attack that ultimately failed.