Aave launches version 3 of its lending protocol on Ethereum

Decentralized finance (DeFi) lending platform Aave is set to launch the third version of its lending protocol, Aave v3, on Ethereum after a successful vote by the platform’s DAO (Decentralized Autonomous Organization).

Aave v3 on Ethereum will support seven assets: wrapped bitcoin, wrapped ether, wrapped staked ether, USDC, DAI, link, and Aave.

The asset selection was proposed by DeFi risk manager Chaos Labs and approved by the Aave DAO in January.

The pricing for all assets, except wrapped bitcoin and wrapped staked ether, will come directly from a Chainlink feed, an oracle protocol that can provide data such as price feeds to smart contract protocols.

Aave v3 on Ethereum will have one eMode activated, which allows for maximum capital efficiency for collateral and borrowed assets with high price correlation.

This version of Aave will exist alongside Aave v2 on Ethereum, which controls over $3.5 billion worth of assets according to DeFiLlama, and users have the option of migrating their positions from v2 to v3.