• Aave (AAVE) has just deployed V3 on the Ethereum mainnet, offering users new risk mitigation features, improved capital efficiency, and reduced gas costs.
• The Aave DAO voted unanimously in favor of the proposal to deploy Aave V3 on Ethereum.
• AAVE, the governance token, remained flat after the deployment of V3.

Decentralized finance (DeFi) lending and borrowing platform Aave (AAVE) has just deployed the third version of its protocol on the Ethereum mainnet. The latest upgrade brings with it new risk mitigation features, improved capital efficiency, and decentralized liquidity.

The Aave DAO voted unanimously in favor of the proposal to deploy Aave V3 on Ethereum, which includes a number of improvements and upgrades. For example, High-Efficiency Mode enables users to increase their capital efficiency when staking or borrowing. In addition, Isolation Mode allows for more assets to be listed on Aave as collateral while keeping the security of the protocol.

To make the protocol even more efficient, Aave V3 has been optimized to reduce gas costs across all functions by 20-25%. Aave bills this upgrade as the “most significant upgrade to the Aave protocol” since its launch in January 2017.

Aave V3 was first deployed on Ethereum Layer-2 networks like Optimism, Polygon, Arbitrum, and Layer-1 blockchain Avalanche. After the V3 deployment on the Ethereum mainnet, the governance token AAVE remained relatively flat. It is currently trading at $88.12.

The Aave team is excited about the potential of V3, as it is designed to offer users more features and improved capital efficiency. The Aave protocol is designed to make decentralized finance more accessible and efficient, and the deployment of V3 is another step towards that goal.