Aave, a cryptocurrency lending app, has now successfully launched on Ethereum in its third version.
Originally launched in March 2022, “Aave v3” was soon put into use on a number of blockchains that could be used with the Ethereum Virtual Machine (EVM). Up until recently, the “v2” version of the program was the only one available to Ethereum users.
Aave v3 has a number of features designed to maximize user’s capital efficiency and reduce expenses. This new version will have special improvements such as eMode (which improves capital efficiency) and Isolation Mode (which ensures liquidity safety for the platform). As long as they have their own debt ceiling and are exclusively used to borrow stablecoins, certain risky assets may also be used as collateral thanks to the “isolation” function. With respect to a certain sort of collateral, there was no mechanism to restrict what kind of asset may be borrowed in the earlier edition. As a result, coins with a smaller market cap and less liquidity frequently couldn’t be utilized as collateral.
The developers claim that the gas optimization method in version 3 will cut gas costs by 20% to 25%. V3 was introduced to Avalanche, Arbitrum, Optimism, and Polygon over the following few months. The most liquid Aave platform has, however, always been Ethereum, and v3 was not previously accessible there.
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