• Aave (AAVE) has deployed its third version, Aave V3, on the Ethereum mainnet.
• The upgrade offers new risk mitigation features, improved capital efficiency, and decentralized liquidity.
• Aave’s governance token AAVE remained flat after the deployment of Aave V3.
The decentralized finance (DeFi) lending and borrowing platform Aave (AAVE) has just deployed the third version of its protocol, Aave V3, on the Ethereum mainnet. This is the most significant upgrade to the Aave protocol since its launch in January 2017 and offers a range of new features and improved efficiency.
Aave V3 offers users a range of new risk mitigation features, such as High-Efficiency Mode and Isolation Mode, which allow users to increase their capital efficiency when staking or borrowing, and to list more assets as collateral while keeping the security of the protocol respectively. The upgrade also focuses on gas optimization, reducing gas costs across all functions by 20-25%.
Despite the significant upgrade, Aave’s governance token AAVE remained flat after the deployment of Aave V3. It’s currently trading at $88.12. Aave’s CEO and founder Stani Kulechov commented on the upgrade, 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 deployment of Aave V3 on the Ethereum mainnet marks an important milestone for the DeFi platform, which is continuing to make waves in the crypto industry. With the new features and improved efficiency, Aave is sure to remain a major player in the DeFi space for the foreseeable future.