Aave Launches Souped Up V3 on Fantom and Avalanche
Aave V3 lowers gas and quickens load times.
By: Samuel Haig • Loading...DeFi News
Aave, DeFi’s largest money market by cross-chain TVL, has launched its new v3 protocol across six different networks. The upgrade promises faster load times and lower gas costs.
Aave has been a source of dramatic growth for low-cost Layer 1s over the past year, with its deployments on Polygon on Avalanche currently ranking as the largest on both networks with $1.1B and $3.1B respectively. The protocol is also the fourth-largest on Ethereum with $7.9B.
Despite Aave’s leading position, the protocol has not undergone a major facelift since launching v2 in December 2020. The new deployment aims to increase the flexibility and control offered to its users by introducing cross-chain functionality, isolated liquidity pools, and new integrations with blockchain networks and infrastructure providers.
Faster Load Times
Aave launched its v3 iteration on March 16. The new platform has been deployed to the Fantom, Avalanche, and Harmony networks, and Ethereum’s leading L2s Arbitrum, Optimism, and Polygon. It will launch on the Ethereum mainnet at an unspecified later date.
Aave v3 boasts a fully redesigned app with faster load times, a reduction of gas costs of between 20% and 25%, and new risk management features. It also supports cross-chain transactions between the various v3 deployments, a high capital efficiency mode enabling greater borrowing power, and isolated liquidity pairs allowing users to separately manage their positions by individual assets.
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Users can also now access Aave v3 via new integrations with wallets and other access points including 1inch, ParaSwap, Zerion, Debank, Zapper, and DeFisaver thanks to a host of new integrations with wallet providers and other access points. The Aave team say the new integrations and deployments bolster the protocol’s decentralization.
Aave highlights that the platform’s v3 overhaul was informed by its community through Aave Improvement Proposals. “Aave is the result of continuous iteration resulting from community involvement and ecosystem growth,” said Stani Kulechov, Aave’s founder and CEO.
The new deployment has been audited by several firms including Sigma Prime, Trail of Bits, and PeckShield.
In its technical documentation for v3, Aave says it plans to focus on cross-chain deployments, which may be why it is delaying the launch on Ethereum. The documents note that the majority of capital supplied to Aave is deposited on the Ethereum mainnet, “which is saturated and has resulted in high transaction fees and UX pain points for users.”
“In a multichain and multi-rollup world, allowing liquidity to flow seamlessly across different chains is increasingly important.”
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