V3 on Testnet

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!¬†ūü•≥

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!¬†¬†ūüĎĽ

Let’s dive into what this major milestone brings:

V3 Features

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¬†‚¨ÜÔłŹ:¬†Allows borrowers to extract the highest borrowing power out of their collateral;

Isolation¬†Mode¬†¬†ūüĒó:¬†¬†Limits exposure and risks to the protocol from newly listed assets by only permitting borrowing up to a specific¬†amount;

Risk Management¬†Improvements¬†ūüĒź:¬†Provides additional protection for the protocol through various risk¬†caps¬†and other¬†tools;

L2-Specific Features¬†ūüõ£:¬†Designs specific to Layer 2 networks to improve user experience and reliability;

Portal¬†ūüĆÄ: 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¬†ūüēļ:¬†Facilitates and incentivizes community usage through a modular, well-organized codebase;

Gas Optimization‚õĹÔłŹ: 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.

How to Test Aave V3ūüĎ∑

V3 of the¬†Aave¬†Protocol is now ready for you to build the next generation of¬†DeFi¬†applications!¬†You can start¬†testing ‚Äď and integrating¬†‚ÄstAave¬†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.

Audits¬†ūüĒć

The¬†Aave¬†V3 code¬†‚Äď public and available on GitHub¬†here¬†‚Ästwas 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 ‚Äď January 2022

  • Certora

Round¬†2¬†‚Äď December¬†2021

  • Sigma Prime

Round¬†1¬†‚ÄstOctober¬†2021

  • Trail of Bits
  • Open¬†Zeppelin
  • ABDK
  • PeckShield

Bug Bounty ūü™≤

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.

Code License

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.

Ecosystem & Integrators

ūüď̬†Ready to read?¬†For a deep technical dive into V3,¬†check out the¬†documentation¬†or review the technical paper.

ūüĒ®¬†Ready to build?¬†For those looking to build¬†on¬†V3¬†and expand the¬†Aave¬†ecosystem,¬†you can access the code on GitHub¬†here.

ūüôŹ¬†Need funding?¬†Check¬†out¬†the¬†Aave¬†Grants¬†DAO¬†for funding for your next project¬†here.

ūüĎŹ¬†Ready to integrate?¬†For¬†those looking¬†to integrate¬†¬†into¬†the¬†Aave¬†protocol,¬†you can access the code on¬†GitHub¬†here.

What’s Next?

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.

ūüĎĽ ūüĎĽ ūüĎĽ

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