Aave V3 will see the top DeFi lender expand beyond Avalanche Ethereum and Polygon.
Aave, a leading Decentralized Finance (DeFi) platform on the market, announced V3 of their protocol.
Aave announced that the third version of its platform will see it expand its liquidity pool by six more blockchains.
According to the announcement, V3 going live allows access to the lending protocol’s features to Avalanche, Polygon, Fantom, Optimism, Harmony and Arbitrium. Aave will also deploy the latest version of its protocol to Ethereum’s mainnet.
Stani Kulechov (founder and CEO of Aave Companies) stated that Aave V3 is the product of constant iteration and community involvement.
Kulechov shared his thoughts on the future of DeFi protocol.
“V3 brings new and existing Aave community members to participate in the Aave DAO, which will continue to shape the future of DeFi.”
What’s new with Aave V3?
According to Aave, “V3 brings groundbreaking new features that span from increased capital efficiency to enhanced decentralisation.”
1/ Aave V3 is now available! 👻
V3, the most powerful Aave Protocol version to date, introduces groundbreaking new features that span increased capital efficiency and enhanced decentralization. Read what’s new in V3 in the thread below👇or visit https://t.co/H3jTyKRqNs to dive in! pic.twitter.com/LXzn7660nA
— Aave (@AaveAave) March 16, 2022
Aave users can now benefit from improved cross-chain asset flow, as well as a 20-25% reduction of transaction costs by gas optimization. An “isolation mode” will enhance security, while high efficiency will unlock the user’s ability to access even higher borrowing.
Because DeFi investors can deposit and borrow assets seamlessly from different blockchains, they are compatible with all other blockchains.
A user could, for example, deposit on the Polygon blockchain and then borrow on Avalanche. If they choose, they can repay the loan on another cryptocurrency, like Ethereum.
“Along with the launch of V3, there’s also a fully redesigned & refreshed Aave app on IPFS where users will be able to access simplified transaction flows, enjoy faster load times, & gain enhanced visibility into their holdings,” the platform said in the announcement.
Aave V3 is also accessible via multiple wallet integrations such as Instadapp 1inch, DeFiSaver, ParaSwap, and DeFiSaver.