One of biggest highlights of V3 arrival of lower fees at AaveAave
team recently announced the launch of the latest iteration of their decentralized lending protocol, version 3, on the Ethereum network. This update is considered the most substantial improvement to the DeFi platform to date. It is important to note that while the integration of Ethereum is newsworthy, V3 has already been available on other high-performance networks such as Polygon, Avalanche and Arbitrum since 2022.
Aave v1 enabled users to engage in lending and borrowing activities with a limited range of digital assets, including ETH and ERC-20 tokens. However, it was limited in terms of security features and governance options. Lower rates and improved functionality are key factors in attracting more users to the platform. The cost reduction is coupled with code optimizations that make it clearer and more efficient, including a simplified flashloan function for low-cost loan options.
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