Defi platform Aave has released version three, which focuses on its users’ risk management and capital efficiency. The platform has launched its Version 3 across six chains, with the ETH mainnet coming in an undisclosed date.
Introducing the Crypto Space to Cross-Chain Lending
Per Aave founder Stani Kulechov, the V3 will come with new functionalities and designs to improve user experience and capital efficiency. These mechanisms include cross-chain lending, isolated markets, and collateral efficiency.
Aave, a Defi leader, has released its V3 across six different chains. It will also launch on the Ether mainnet at an undisclosed time. These upgrades may boost the platform’s performance and help maintain its leadership position in Defi. Currently, Aave has over $11B in TVL only behind Terra blockchain-based Achor protocol which has $13B in TVL.
Currently, Aave is live on blockchains like Ethereum, Avalanche, and Polygon, with some assets featuring variable borrow and interest rates per chain. Along with variable interest rates, the liquidity can also change uncontrollably between the chains.
Portals is a feature in Aave that allows for the minting and burning of assets through cross-chain bridges. The bridge will allow for the minting of Aave’s ‘a Tokens’ in one chain and burn them on the other chain to maintain the accounts between different chains while allowing users to benefit from the market.
“You could deposit in [Ethereum] mainnet, but borrow from Polygon and repay on Avalanche – all under the hood,” said Kulechov.
Introducing the New Isolated Markets
In addition to the impressive capital mobility, the new version of Aave also increases the ease of users onboarding new forms of collateral.