• Aave V3 is now live on the Ethereum mainnet, with WBTC, WETH, wstETH, USDC, DAI, LINK, and AAVE as the only supported assets.
• Aave V3 improves capital efficiency, reduces gas costs, and ensures better liquidity decentralization.
• Data show that the transition to Ethereum has not immediately affected Aave’s total value locked (TVL), although it is up 24% in the last month.
Aave, the popular decentralized lending and borrowing protocol, has officially launched its upgrade to version 3 (V3) on the Ethereum mainnet. This marks a significant milestone in the platform’s development, as it now supports WBTC, WETH, wstETH, USDC, DAI, LINK, and AAVE as the only supported assets.
The V3 upgrade is designed to improve capital efficiency and reduce gas costs, while simultaneously ensuring better liquidity decentralization. This was achieved by making the protocol more flexible, allowing for a variety of new risk mitigation features. According to Aave co-founder, Stani Kulechov, “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 transition to Ethereum has not had a significant effect on Aave’s total value locked (TVL). Data shows that TVL is 2% lower in the past 24 hours, although it is up 24% in the last month, rising to $4.56 billion as of the time of writing.
This upgrade comes after the Aave community delayed the upgrade, as the developers determined that immediately improving V2 Pools to V3 would not have yielded the desired level of compatibility with other Aave V3 pools running on Avalanche, Polygon, and Ethereum layer-2 platforms.
Aave V3 is an important milestone for the platform, as it establishes a more secure, efficient, and decentralized protocol. This will allow for improved capital efficiency, reduced gas costs, and better liquidity decentralization. It is also the first step in Aave’s expansion to other blockchains, such as Avalanche, Polygon, and Ethereum layer-2 platforms. With the launch of Aave V3 on the Ethereum mainnet, the platform is now better positioned to continue its growth into the future.