• Aave V3 is now live on the Ethereum mainnet, which includes WBTC, WETH, wstETH, USDC, DAI, LINK, and AAVE as the only supported assets.
• V3 improves capital efficiency and reduces gas costs, while also ensuring better liquidity decentralization.
• The transition to Ethereum did not immediately affect Aave’s total value locked (TVL), with TVL up 24% in the last month.
Aave has recently released its much-anticipated upgrade to its DeFi platform, Aave V3, on the Ethereum mainnet. With this upgrade, users can now enjoy the full range of supported assets, including but not limited to WBTC, WETH, wstETH, USDC, DAI, LINK, and AAVE.
The upgrade is expected to bring numerous benefits to users, as pointed out by co-founder Stani Kulechov. According to Kulechov, the flexible design of Aave V3 introduces new ways of mitigating risks, reducing gas costs, and increasing capital efficiency, all while ensuring better liquidity decentralization.
In addition, the transition to Ethereum, which expands Aave’s presence in other top blockchains, did not immediately affect its total value locked (TVL). Data from DeFiLlama shows that it is 2% lower in the past 24 hours, while TVL is up 24% in the past month, rising to $4.56 billion at the time of writing.
The new upgrade also comes after the Aave community delayed the upgrade. The developers then assessed that immediately improving V2 Pools to V3 would not have yielded the desired level of compatibility with other Aave V3 pools running on Avalanche, Polygon, and Ethereum layer-2 platforms.
To ensure that the upgrade was successful, the Aave developers reworked the current Aave V3 on Ethereum to make it more compatible with other Aave V3 pools outside of Ethereum. This was done while also making the upgrade negligibly complex in comparison.
Now, with the launch of Aave V3, users can enjoy a more secure and robust DeFi platform, with improved capital efficiency and reduced gas costs. Furthermore, the platform also ensures better liquidity decentralization, which can help protect against the risks associated with volatile markets.
With the launch of Aave V3, the company is looking to make its mark in the DeFi space, and bring more users to the Ethereum blockchain. As such, it is expected that the TVL of Aave will continue to rise in the upcoming days and weeks.