Aave Plans To Launch Aave V3 On The Ethereum Protocol
Following a successful DAO vote, the decentralized finance (DeFi) lending platform is set to unveil the third version of its tool on the Ethereum ecosystem. The launch is set to come with support for seven different crypto assets.
Aave V3 Set for Launch
According to reports, the new version will support seven crypto assets like wrapped BTC, wrapped and staked Ether, DAI, USDC, Aave, and LINK. Chaos Labs, the DeFi risk manager, proposed the assets. Furthermore, the Aave DAO community voted to adopt Chaos Lab due to its risk-off model for the deployment of the v3 on the Ethereum protocol at the start of January.
Meanwhile, the prices for all the listed assets apart from wrapped BTC and wrapped or staked Ether are to come directly from the Chainlink pricing feed. As an oracle protocol, Chainlink provides data for pricing feeds linked to smart contract platforms.
Hence, Aave’s price will depend on the price adapter smart contracts, as revealed by the Aave developer, BGD Labs. However, the price adapter smart contracts are based on the Chainlink feeds, with the latter being the focus of the pricing process.
The new Aave v3 on the Ethereum protocol will come with a single-activated eMode. The eMode feature will allow maximum capital efficiency for collateral and high-value loaned assets.
The eMode deployment will only support Ether-based assets that will help wrapped and staked Ether (wETH and sETH). With the Aave v3 launch, the DeFi part of the protocol will expand its multi-chain drive.
The firm disclosed that the third version of Aave’s lending application indicates the project’s move to deploy its system on different blockchain networks. Aave v3 has already been integrated into six chains: Avalanche, Polygon, Optimism, Fantom, Arbitrum, and Harmony.
The previous Aave v2 is the largest DeFi lender on the Ethereum ecosystem, with the highest total volume locked (TVL). It controls more than $3.5 billion worth of assets in the DeFi space, as disclosed by DeFiLlama, an on-chain analytics platform.
Aave Eyes Long-Term Growth
At the start of 2023, the lending protocol revealed several developmental strategies it intends to embark upon if approved. As a result, it sees the snapshot voting as the next step toward ensuring that the network revamps its grants renewal process to facilitate its long-term operations.
According to the Aave Grant, the protocol has awarded over 122 grants after the previous proposal, with recipients of the grants focusing on building applications and other tools for the Aave community. Despite the unforeseen market outcome last year, Aave intends to focus its grants on development that would favor investors in the future.
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