Aave v3 launches marking a major change in liquidity pools

Aave (AAVE/USD) has launched the Aave v3 liquidity pool. The pool launch is a major development on the Aave ecosystem, as it promised users access to financial efficiency, better security and a high level of decentralisation.

Aave launches v3 liquidity pool

The v3 proposal was voted upon between November 4 and November 11. The proposal was passed through a unanimous vote, whereby 2911 members of the community agreed on the allocation of 342,000 tokens towards the project.

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The holders of the AAVE tokens can take part in Aave Improvement Proposals (AIPs). Token holders can propose and vote on network upgrades that will be implemented within the network.

The v3 upgrade will introduce several improvements such as cross-chain asset functionality, gas optimisation, high efficiency, and a community contribution feature. Moreover, decentralised applications (DApps) will be integrated into the v3 project. The team has stated that deployment on the Ethereum mainnet will follow later.

Boosting cross-chain compatibility

A spokesperson from Aave stated,

The cross-chain portal will enable users to port their own liquidity from one network to another, at their discretion. It will allow each iteration of the protocol on the various networks to scale quite quickly with the depth of capitalisation.

Moreover, the spokesperson added that the community needed to remain engaged to boost capital efficiency, security, and decentralisation. Aave is currently one of the leading players in DeFi, and the protocol boasts of a large community.

Data from DappRadar shows that Aave is the sixth-largest network by total value locked (TVL). The company has also been making strategic partnerships that continue to boost the strength of its community. One of these partnerships was with the Silvergate Capital Corporation. The latter appointed Rebecca Rettig, the general counsel of Aave, to its board of directors.

During the appointment, the president and CEO of Silvergate, Alan J. Lane, stated, “Rebecca’s broad wealth of knowledge in the blockchain and digital currency space make her a valuable addition to our board.” Lane noted that Rebecca would assist the company to provide innovative solutions to the digital asset sector.