Aave deploys V3 on Ethereum mainnet to mitigate user risk
Aave recently released Version 3 on the Ethereum mainnet. The network released an official tweet to inform users about the deployment. With the update, the Aave community has gained access to technical advantages and features on Ethereum. This is Aave’s biggest deployment, as it includes support for seven assets. These assets are wrapped Ether, wrapped Bitcoin, USDC, wrapped staked Ether, DAI, Aave, and LINK.
Aave Protocol V3 is now live on the Ethereum market 👻
”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.” @StaniKulechov pic.twitter.com/QsSnnlhEMr
— Aave (@AaveAave) January 27, 2023
The latest Aave update is also focused on minimizing user risk. One of the latest features it proposes is the much-anticipated high-efficiency mode. It allows users to expand their capital efficiency while lending and borrowing correlated assets.
In addition, Aave has released its isolation mode in Version 3. The feature increases the number of assets listed on the protocol as collateral. At the same time, the addition maintains protocol security while users can segregate the liquidity risks.
Gas optimization is another feature accompanying the update. The feature cuts the gas fees associated with every function. According to Aave, the new feature cuts around 20% to 25% gas expenses.
The move was highly supported by the community, as Aave conducted a vote regarding the deployment. The vote ended on January 26, gathering over 700,000 AAVE. The session concluded with 100% of the votes in favor of the Ethereum mainnet deployment.
The CEO and founder of Aave, Stani Kulechov, talked about the deployment. According to Stani, the flexible design is the best part about Version 3. It facilitates new risk minimization features along with elevated decentralized liquidity and capital efficiency.
It has been almost a year since Aave went live on Avalanche, Harmony, Optimism, Fantom, Polygon, and Arbitrum with Version 3. Thus, deploying the protocol on Ethereum was an inevitable decision.