Aave, one of the largest decentralized finance (DeFi) lending platforms, has announced the launch of the third iteration of its protocol, dubbed Aave “v3.” The defi lending giants aim to expand their reach in the industry with the launch.
Features of the Aave Version 3
According to Aave, version 3 is the most powerful Aave protocol has been since its launch. A key feature of the upgrade is the introduction of cross-chain lending to Aave.
Aave announced the launch of its services across six different blockchains – Polygon, Fantom, Avalanche, Arbitrum, Optimism, and Harmony. A seventh chain – Ethereum mainnet – is expected, but with an unspecified date.
By being compatible with different blockchains, users can now seamlessly deposit and borrow assets from one network to another on Aave.
Aava has also introduced an “isolation mode” in its new protocol to enhance security. Aave version 3 also promises higher efficiency to unlock the user’s ability to access even higher borrowing.
In addition to introducing cross-chain asset flow, version 3 brings a 20-25% reduction in transaction costs via gas optimization.
Aave, Expanding its DeFi Services
Aave has also fully redesigned & refreshed the Aave app. Aave notes that it has revamped its app to allow users “access simplified transaction flows, enjoy faster load times, & gain enhanced visibility into their holdings.”
Along with the improvement to its protocol, Aave announced that it hopes to use the V3 to bring new and existing Aave community members to “participate in the Aave DAO, which will continue to shape the future of DeFi.”
On the Flipside
- Aave’s native token (AAVE) has been unable to keep up with the growth of the protocol, falling by 80% since May 2021
Why You Should Care
The integration of cross-chain lending retools Aave for a much larger market opportunity as it aims to push decentralized lending mainstream.
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