Aave V3 is Now Available on Seven Public Testnets
Recently, Aave Governance voted in favor of a proposal to implement V3 of the Aave Protocol, which brings updates and new features to the Aave smart contracts. Today, Aave V3 has been deployed across seven testnets and is available to try here! 🥳
Aave V3 is the result of continuous iteration, community feedback, and ecosystem growth. V3 builds upon the strong foundational elements of the Aave Protocol (e.g., aTokens, instant liquidity, stable rate borrowing, etc.) while introducing exciting improvements such as increased security and further enhanced decentralization.
The latest features, such as Portal, create new use cases and opportunities for innovation from the community. Now is the time for builders, developers, teams, and community members to start testing V3, and integrating and further expanding the Aave ecosystem! 👻
Let’s dive into what this major milestone brings:
The release of V3 will make the Aave Protocol one of the most advanced, secure, and efficient DeFi protocols across the ecosystem. V3 offers greater capital efficiencies, increased security, and cross-chain functionality, while facilitating increased decentralization across the protocol and throughout the ecosystem. Some of these new features include:
High Efficiency Mode ⬆️: Allows borrowers to extract the highest borrowing power out of their collateral;
Isolation Mode 🔗: Limits exposure and risks to the protocol from newly listed assets by only permitting borrowing up to a specific amount;
Risk Management Improvements 🔐: Provides additional protection for the protocol through various risk caps and other tools;
L2-Specific Features 🛣: Designs specific to Layer 2 networks to improve user experience and reliability;
Portal 🌀: Allows assets to seamlessly flow between Aave V3 markets over different networks (note that this feature will only be available on the main network deployment);
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!
The V3 technical paper is available here, while you can find a full explanation of V3 and its features here.
V3 of the Aave Protocol is now ready for you to build the next generation of DeFi applications! You can start testing – and integrating – Aave V3 on the following testnets: Ethereum Rinkeby, Fantom Testnet, Harmony Testnet, Arbitrum Rinkeby, Polygon Mumbai, Optimism Kovan, and Avalanche Fuji. You can get tokens to test from the faucet here.
From the Dashboard page scroll down to the bottom of supply section and click Faucet, then simply select the token of your choice and submit the transaction. Make sure to have the native network token before using the faucet.
You can learn more about testing Aave from our FAQ.
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. In the first round of audit, some issues were identified, and work was done to address each of these issues reported and to resolve all vulnerabilities. The audit reports can be found in the repository under the audits folder here.
Formal Verification – January 2022
Round 2 – December 2021
Round 1 – October 2021
Any developers that discover vulnerabilities within the code are encouraged to report them to ensure the continued security of the protocol. Subject to community evaluation, a public bug bounty program will run over the next 30 days which will reward developers for identifying critical bugs.
Keep an eye on the governance forum for further discussion on this topic.
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.
📝 Ready to read? For a deep technical dive into V3, check out the documentation or review the technical paper.
🔨 Ready to build? For those looking to build on V3 and expand the Aave ecosystem, you can access the code on GitHub here.
🙏 Need funding? Check out the Aave Grants DAO for funding for your next project here.
👏 Ready to integrate? For those looking to integrate into the Aave protocol, you can access the code on GitHub here.
Feedback from the community is extremely valuable. Try V3 and join the discussion on Discord and voice your opinion on the governance forum!
Stay tuned for updates on wen mainnet and more by following @AaveAave on Twitter.
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