After almost a year of testing, Aave Protocol V3 was launched on Ethereum. The developers promise a bunch of different features and, of course, a reduction in gas costs. And cbETH is now available on Aave V3 market on Ethereum.
Aave is a decentralised non-custodial liquidity market protocol founded by Stani Kulechov in 2017. Users can use this protocol to lend or borrow crypto. Last year AAVE introduced innovative crypto credit — undercollaterized loans and a stablecoin pegged to the dollar.
Aave was developing an update to its protocol, V3 protocol, for more than a year. The main features of the protocol were presented at governance.aave back in November 2021 and finally Aave V3 protocol was launched on Ethereum. On January 27, Aave announced on Twitter that Aave V3 “is now live on the Ethereum market.”
The Aave V3 protocol offers many features that users can apply when interacting with the Ethereum mainnet. Aave V3 protocol offers users a High-Efficiency Mode, which allows users to increase capital efficiency, and Isolation Mode, which allows the listing of more assets on Aave.
In addition to High-Efficiency Mode and Isolation Mode, Aave V3 protocol also implements a Gas Optimization system, which reduces gas cost by 20–25%.
The Aave team are now actively promoting the migration from V2 to the V3 protocol.
And on February 5, a vote was held in the Aave community, during which 99.96% of users voted to add cbETH (a liquid staking derivative token issued by Coinbase) to the Aave V3 market on Ethereum.
Aave protocol is slowly but surely improving every day. To know what will happen to Aave and other ongoing crypto projects, subscribe to our newsletter. And we shall continue to observe.