Aave V3 Is Live On Ethereum, TVL Up 24% In One Month

Aave V3 is now live on the Ethereum mainnet. With this upgrade, WBTC, WETH, wstETH, USDC, DAI, LINK, and AAVE are the only supported assets.  Aave V3 Improves Capital Efficiency Stani Kulechov, the co-founder of Aave, said V3’s flexible design introduces new ways of mitigating risks, reducing gas costs, and improving capital efficiency, all while ensuring better liquidity decentralization. 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 This upgrade came after the Aave community delayed the upgrade. Then, Aave developers assessed 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. Related Reading: Aave Price Surges As V3 Cloud Upgrade Draws Near The current Aave V3 on Ethereum has been reworked. It is negligibly complex and more compatible with other Aave V3 pools outside of Ethereum. The transition to Ethereum, expanding Aave’s presence in top blockchains, didn’t immediately affect its total value locked (TVL). Data show that it is 2% lower in the past 24 hours. However, TVL is up 24% in the last month, rising to $4.56 billion as of the time of writing on January 27, according to data streams from DeFiLlama. Aave is now the fourth largest DeFi protocol by TVL, trailing Lido Finance, MakerDAO, and Curve. However, the dApp is the second-largest lending protocol by TVL, behind MakerDAO. By launching on Ethereum, and upgrading from the original V2, the protocol’s TVL might gradually increase over the coming weeks or months.  This, in turn, may positively impact AAVE prices. Aave is a decentralized money market, allowing crypto holders to actively lend and borrow various assets. Integrating V3 on Ethereum avails the protocol on six other platforms, including Avalanche, Polygon, and Harmony. Polygon is compatible with Ethereum’s virtual machine, existing as a layer-2 protocol enabling higher scalability and significantly lower trading fees. What Aave V3 Brings  Developers claim Aave V3 introduces various changes that, as the co-founder said, make lending and borrowing more seamless and cheaper.  According to the protocol, this version is optimized to reduce gas costs by around 20-25% across the board. Users can also move assets across all Aave markets, irrespective of the network. By launching on Ethereum, Harmony users, for example, would be free to transfer assets and participate in Aave V3 markets on the most active platform.  Related Reading: Aave Price Recovers Back To $57, But Threat Of New Attack Looms Over Protocol Aave V3 introduces the “Isolated Mode” where Aave governance can vote to list new tokens as isolated assets with specific debt ceilings. Aave clarifies that the debt ceiling is the maximum USD reading that a borrower’s collateral can cover. Only approved tokens, mostly stablecoins, can be borrowed in this mode. Feature image from Canva, Chart from TradingView

DeFi protocol Aave V3 goes live on ethereum mainnet 

Aave has announced the successful launch of Aave V3 on the ethereum mainnet. The latest iteration of the DeFi protocol comes with several improvements, including gas fee optimization and more.  Aave V3 launches on the ethereum mainnet  Following strong backing…

Aave gets access to new users through this upgrade, but is it enough

Aave gets access to new users through this upgrade, but is it enoughAave’s partnership with Lemon App could help expand its user base. V3 launch generated interest, but the token’s velocity and network growth declined. With a new collaboration, over 1.7 million users from Argentina and Brazil could get access to Aave [AAVE] and supply liquidity to the platform. This could help in increasing the declining number […]

Aave V3 set to launch on Ethereum amid a steady decline in daily revenue

Aave V3 set to launch on Ethereum amid a steady decline in daily revenueA new proposal to launch Aave V3 on Ethereum has been published. The decline in new users on Aave has caused its daily revenue to decline by over 70% in the last year. Aave, the decentralized lending protocol, recently put forward a proposal titled “Aave Ethereum V3,” in which it requested votes from its community […]

Aave to use Chainlink’s PoR to secure bridged assets on Avalanche

Aave to use Chainlink’s PoR to secure bridged assets on AvalancheAave DAO has approved a proposal to implement Chainlink’s PoR in v2 and v3 on Avalanche. Chainlink had rolled out the PoR feature following FTX ‘s collapse in November. Popular decentralized finance (DeFi) lending protocol Aave is set to integrate proof of reserve in order to secure bridged assets on Avalanche, a layer-one blockchain specializing […]

Aave seeks community ‘go-ahead’ to list Lido’s wstETH on its liquidity pool

Aave seeks community 'go-ahead' to list Lido's wstETH on its liquidity poolAave has published a proposal to list wsETH on its V3 deployment on Optimism. Its stETH Reserve on Aave V2 has been successful so far. Leading cryptocurrency protocol Aave [AAVE] recently introduced a new proposal detailing the addition of Lido’s wrapped stETH, wstETH, to its V3 deployment on layer 2 network (L2) Optimism.  Users of […]