The updated lending protocol will feature lower gas fees and cross-chain portals.
Aave – the popular web 3.0 lending protocol – has released its anticipated V3 update. The new version includes multiple new features that reportedly offer “increased capital efficiency” and “enhanced decentralization”.
- According to an announcement from the company, one of the new features includes “Portals” allowing for transfers of Aave V3 assets across different chains by “permit listed” bridge protocols, approved by Aave governance.
- Many chains will be available given that the update was greenlit across Polygon, Fantom, Avalanche, Arbitrum, Optimism, and Harmony.
- Different blockchain networks can feature varying transaction fees, settlement times, and interoperability with other protocols. However, bridges have been known to face security issues in the past, necessitating trusted resources to empower cross-chain transfers.
- Another new feature includes “high-efficiency mode” or “E mode”, allowing borrowers to secure more money for their collateral within the same asset category.
- As a security boost, Aave also added an “isolation mode” that limits the degree to which new and unestablished assets can be used as collateral for loans. New assets are often prone to high volatility, making for unstable collateral and frequent liquidations.
- Gas costs for all Aave functions have reportedly been reduced by 20-25% with the update.
- Finally, the Aave App has been redesigned with a new dashboard, simplified transaction flows, better app loading speeds, and more “disciplined and consistent” visual patterns.
- Aave was recently selected as one of nine projects to move forwards with Brazil’s digital innovation challenge.