It's here! Say “gm” to the most powerful version of the Aave protocol to date: V3.
Now live, Aave V3 builds upon the foundational elements of the Aave Protocol (e.g., aTokens, instant liquidity, stable rate, etc.) with groundbreaking new features that span from increased capital efficiency to enhanced decentralization.
Dive into V3 now: https://aave.com
These innovative technologies result from the Aave community’s continued dedication to pushing forward not only the Aave ecosystem, but also the entire DeFi ecosystem at large.
“Aave V3 is poised to accelerate the growth of DeFi with its fully revamped user experience,” said Sandeep Nailwal, Co-Founder of Polygon. “This is a huge milestone for one of the most popular liquidity protocols in DeFi and furthers our mission to bring DeFi to the next hundreds of millions of people.”
This is a pivotal milestone for the Aave Protocol and community, and this celebratory post will dive into key new features, the ecosystem, the redesigned app, governance, and more. 🎉
The release of V3 makes the Aave Protocol one of the most advanced, secure, and efficient DeFi protocols across the ecosystem. With the introduction of key new features, Aave V3 provides greater capital efficiencies, increased security, and cross-chain functionality, while facilitating increased decentralization across the protocol and throughout the ecosystem.
Powerful new features include:
Portals 🌀 - A highly anticipated feature, Portals offer only “permit listed” bridge protocols, voted upon by Aave governance, which facilitate cross-chain transactions, allowing assets to seamlessly flow between Aave V3 markets over different networks.
High Efficiency Mode ⬆️ - Also known as “E-Mode,” users have access to higher borrowing power within the same asset category, allowing borrowers to extract the most out of their collateral.
Isolation Mode 🔗 - Newly listed assets "isolated" by Aave governance can only be used as collateral up to a specific debt ceiling. Within Isolation mode, users can only borrow assets of a particular type (e.g., stablecoins, ETH/wETH) and cannot simultaneously use other assets as collateral, limiting exposure and risks to the protocol from newly listed assets.
But wait... there’s more!
L2-Specific Features 🛣: Designs specific to Layer 2 networks to improve user experience and reliability. The Aave Oracle network continues to be powered by Chainlink.
Community Contribution 🕺: Facilitates and incentivizes community usage through a modular, well-organized codebase.
Gas Optimization⛽️: Gas costs of all the functions are reduced by around 20-25% across the board!
Risk Management Improvements 🔐: Provides additional protection for the protocol through various risk caps and other tools.
To learn more about the new features, read the original Governance proposal here or pour a cup of tea and dive into the technical paper for an in-depth explanation.
With the community greenlighting V3 deployments across Polygon, Fantom, Avalanche, Arbitrum, Optimism, and Harmony, the Aave Protocol continues to grow its exceptional reach, even enabling cross-chain governance voting!
Users will be able to access Aave V3 via countless new wallet integrations and access points on Instadapp, Debank, 1Inch, Paraswap, Zapper, DeFisaver, Zerion, and more.
“The launch of Aave V3 has introduced new access points for DeFi users, and we are excited to be a part of the initial cohort of new integrations going live today,” said Samyak Jain, Co-Founder & CTO of Instadapp. “Aave is one of the most popular protocols underpinning the DeFi ecosystem and has grown to the top protocol on Instadapp by TVL.”
Note: Ethereum Mainnet deployment will be determined by the community based on the maturity of the currently deployed markets. More on this soon!
Along with the launch of V3, there is also a fully redesigned and refreshed Aave app deployed to IPFS where users will be able to access simplified transaction flows, enjoy faster load times, and gain enhanced visibility into their holdings via Aave’s revamped dashboard: https://app.aave.com
What to expect in the V3 compatible app:
Have feedback on the design and app? Feel free to reach out on https://discord.gg/aave under #feedback if you have ideas to share.
Note: The previous version of the app is still accessible via https://classic.aave.com
The Aave V3 code – public and available on GitHub here – was audited by leading security firms in two phases to ensure that any vulnerabilities discovered were immediately resolved, and any risks mitigated. Aave's V3 code has been audited by Sigma Prime, Trail of Bits, Open Zeppelin, ABDK, and PeckShield, in addition to undergoing formal verification by Certora. Reports can be found here.
Since the release of the test net no significant findings have been reported.
Because Aave Governance is responsible for the growth and development of the Aave ecosystem, it was in the community’s hands to decide the copyright licensing scheme applied to the V3 code. The community voted with a Snapshot to release the code under the business license.
And last but not least...
👻 Aave Governance! Anyone can get involved and contribute to the protocol's future with the Aave governance forum here and by voting on up-and-coming proposals here. Aave governance further supports voting delegation and proposition, and has various academic institutions involved in the community. You can also find the proposal to implement V3 that was voted in favor by the Aave Governance here.
🙏 Need funding? Check out the Aave Grants DAO for funding for your next project here.
📝 Ready to read? For a deep technical dive into V3, check out the documentation or review the technical paper.
🔨 Ready to build? For all builders, teams, and developers ready to build on the Aave protocol, you can access the protocol and periphery code on GitHub here.
🚀 Launch a network. Aave is cross-chain agnostic, and for teams who wish to deploy an Aave instance on a new network, you can find out the process here.
"Aave V3 is the result of continuous iteration resulting from community involvement and ecosystem growth," said Stani Kulechov, founder and CEO of Aave Companies. “V3 brings new and existing Aave community members to participate in the Aave DAO, which will continue to shape the future of DeFi."
Header illustration by Noah Farrar