Aave v3, the famous crypto DeFi lending platform, moves to launch its latest version, v3, on the Ethereum network hours after an effective DAO vote.
Closing of DAO vote
The Decentralized Autonomous Organization (DAO) vote that closed on Jan 26 gives Aave the mandate to launch its third version into the Ethereum network. The governance proposal’s vote ratifies its integration into the Ethereum chain.
Aave v3 supports seven assets, including wrapped ether, USDC, link, wrapped bitcoin, Aave, and wrapped staked Ether, as proposed by Chaos Labs. Earlier in January, the Aave DAO voted to approve the seven assets and their deployment into the Ethereum network. Chaos Lab is a DeFi risk manager for Aave.
What does Aave bring to the Ethereum network?
Aave v3 enables a Chainlink feed to control the pricing of all the assets mentioned except wrapped staked ether and wrapped bitcoin. Chainlink offers the version with a data feed, including price feeds to the smart contract protocols. Although the pricing of wrapped bitcoin and wrapped staked ether get information from smart adapter contracts, the adapters also rely on Chainlink feeds. BGD Labs, the developer of the Aave platform, indicated that the pricing system interconnects effectively to eliminate mistakes.
Adopting Aave v3 into the Ethereum network will allow the operation of a single eMode. The activated eMode will only facilitate assets related to ether. In this case, the wrapped staked ether and wrapped ether will receive the services of the eMode. In Aave, an eMode enables the platform to facilitate efficiency in borrowed and collateral assets to achieve a high price correlation.
Expansion of Aave in Ethereum
The DeFi-based lending platform Aave enjoys significant support in the market. The launch of its third iteration in Ethereum gears towards adopting a multi-chain approach. The third version is already running in six different chains in the market, including Harmony, Avalanche, Polygon, Arbitrum, Fantom, and Optimism.
Relationship between Aave v2 and v3
The Aave v3 did not get into the Ethereum network immediately after its release because the Aave v2 still runs in the chain. According to an analysis by DeFiLlama, Aave v2 is the biggest DeFi lender in the Ethereum network by controlling assets worth over $3.5 billion. Implementing Aave v3 into Ethereum will not interfere with v2 operations since the DAO, through a vote, decided to keep both versions on the network. Users have the power to migrate from v2 to v3, and BGD provides a swift migration process.