The third version of crypto lending leader Aave is now deployed on Ethereum for the first time, with the version initially deployed on several Ethereum Virtual Machine (EVM)-compatible blockchains.

According to an Aave Twitter thread, the new version promises “flexible design” which enables several new risk mitigation features, “improved capital efficiency & decentralized liquidity – all while reducing gas costs.”

Such features leverage the capabilities of borrowers with regards to liquid staking and the borrowing of stablecoins, as well as being able to assign certain riskier assets as collateral with the new “isolation” feature. Over the months, v3 was deployed to Polygon, Avalanche, Optimism and Arbitrum, but the Ethereum version provided more liquidity.

Sources:

https://twitter.com/AaveAave

https://www.investing.com/news/cryptocurrency-news/aave-deploys-v3-on-ethereum-after-10-months-of-testing-on-other-networks-2990506

https://cointelegraph.com/news/aave-deploys-v3-on-ethereum-after-10-months-of-testing-on-other-networks