Original title: Coming! Aave V2 officially launched
Today we finally ushered in the Aave Protocol V2 on the mainnet!
The Aave protocol V1 was launched at the beginning of this year to unlock the value of DeFi and improve user experience. In less than half a year, the growth of the Aave protocol has created a record of DeFi, and it has rapidly developed into a project with a market size of more than 1 billion US dollars.
, Aave V1 brings innovations such as flash loans and aToken as new methods to improve the utilization of DeFi funds.
After handing over the management keys to the community, Aave has taken an important step towards a more decentralized direction. Aave’s philosophy is: Finance on Aave can develop in the direction the community hopes. Now with effective governance functions and (Aavenomics) Aave economy, the future of the agreement is in the hands of the community.
This week the Aave agreement has entered another important milestone. Using the 0.09% fee incurred by the flash loan, since the launch of V1, the flash loan has created an additional $906,000 in income for depositors.
Today, we are very happy to introduce some cooler new features to unlock more value in DeFi and make the overall experience more seamless.
We are full of confidence in the future, and thank you for your feedback when using V1. The feedback from the community is the source of inspiration for our iteration.
V2 new features
Earnings & Collateral Exchange
In DeFi, assets used as collateral are always tied up. But now with V2, collateral can be freely traded . Collateral exchange can be used as a tool to avoid liquidation. For example, if the price of collateral starts to fall, this feature also allows users to exchange assets to get the best returns in the market.
Flash loan update
Lightning loan is that it has affected the entire DeFi field, resulting in many innovative tools and “financial Lego.”
Collateral repayment
Before V2, if users wanted to use part of the collateral to repay the loan, they had to withdraw the collateral first, use it to purchase the borrowed assets, then repay the debt and unlock the deposited collateral. This requires at least 4 transactions on multiple protocols, which not only costs time and money, but also the user experience is not smooth. This new feature can make it easy and simple for users.
Lightning liquidation
In the past, liquidators needed to have certain funds in their wallets or obtain funds from other places in order to liquidate their positions and receive liquidation bonuses. Lightning loan is a good participation tool. With Aave V2, liquidators can use flash loans to quickly borrow funds from the Aave protocol itself to perform liquidation.
Bulk Lightning Loan
Lightning loans are getting stronger and stronger. In V1, a flash loan borrower can only borrow one currency at a time. Bulk Lightning Loan allows developers to execute Lightning Loans with multiple assets in the same TX. This means that flash loan borrowers can access almost all agreement liquidity.
Debt tokenization
In V2, the debt position is tokenized, so the borrower will receive a token representing his debt. This kind of debt tokenization makes local credit delegation in the Aave protocol possible and allows borrowers to manage their debt positions from a cold wallet.
Local credit authorization
Mortgage loans in DeFi have become an increasingly popular liquid local credit authorization that will be expanded in V2.
In July this year, Aave introduced credit authorization, and then used OpenLaw to reach a loan agreement in the summer. This is the first credit authorization from the Aave agreement to DeversiFi. A lively discussion was triggered in the community, and now Aave V2 has achieved credit authorization! Borrowers using credit authorization can be institutions, enterprises, non-governmental organizations, and cryptocurrency exchanges (such as DeversiFi), etc., to further release the potential of DeFi and increase liquidity for the financial world. The use of credit authorization allows the principal to obtain additional income from the income already obtained in the agreement, and the borrower can obtain an unsecured loan.
Next, we will add credit authorization to the user interface. If you are a developer, you can follow this tutorial and try it yourself.
Gas optimization
Recently, users of Ethereum have noticed network congestion and high transaction gas fees. In order to help reduce these gas costs, Aave V2 introduces a gas optimization scheme, which in some cases reduces protocol transaction costs by up to 50%!
Fixed & variable borrowing rate
. With Aave V2, borrowers can have both fixed-rate borrowing positions and variable-rate borrowing positions in the same wallet, as well as the same underlying assets. This provides borrowers with more options and flexibility to make their loan conditions better. Borrowers can still switch between variable and fixed interest rates at any time.
More V2 access channels
Now, you can directly access Aave V2 through the following channels
- Argent
- Zapper
- Zerion
- imToken
- DeFi Saver
Users should have more choices in their finances, including accessing Aave’s financial tools and services directly from their favorite wallets and platforms.
Migration of liquidity to V2
Recently the community passed the AIP-3 proposal to make the migration from V1 to V2 more seamless. By using the migration tool supported by Lightning Loan, users do not need to close the V1 loan position when migrating.
We will introduce this migration tool later, so if you have a V1 position now, there is no need to close it.
Security and audit
Security is the top priority for Aave. The formal verification is done by Certora. The report will be released soon, so stay tuned.
Aave V2 has been audited by MixBytes, CertiK, ConsenSys Diligence and PeckShield, including a Chinese audit report. Aave is the first company in the industry to do this, and therefore attracts the growing Chinese market.
In addition to smart contract audits, Aave also collaborated with Gauntlet to test the financial infrastructure of the protocol: resilience against attacks by bad actors and incentives for honest participants. The market risk assessment report will introduce the market and liquidity risks of Aave assets and their performance under extreme conditions through optimized parameter recommendations. Further analysis will assess the congestion risk of Ethereum and how to make Aave more resilient.
Storage factor and parameter changes
The DeFi field has witnessed amazing growth and competitive testing, reducing the risk of the entire Aave market. In addition, the Aave ecosystem has matured and has an educated community. V2 improves Aave’s current borrowing limit by optimizing risk parameters:
- Increase the collateral capacity of USDC, BAT, LINK, UNI, WBTC and WETH
- Lower stable currency borrowing rates
V2 also introduced a reserve factor to fund the long-term sustainability of the DAO. The reserve factor allocates part of the agreed revenue to the Aave Ecological Reserve. This reserve is used to maintain the DAO and pay to contributors. A key expenditure of the DAO is to reward security module pledgers who bear the risk of deficits. The number of reserves is also a risk premium, so it will be calibrated according to the overall risk of the asset.
Thanks to the Aave community for your company and participation all the way
Aave collaborated with Coingecko for an event
- 5000 copies of Aave Ultraswag candy gift box, including an Aave theme backpack, 1 T-shirt, 1 small beanie and a special Aave-Chan NFT
- 1500 Special Edition Aave-Chan NFT
In addition, to celebrate the launch of V2, the top 100 addresses that use V2 and have at least 10 days deposits of no less than $100 in assets will receive an additional special edition “pioneers” NFT in cooperation with POAP.
The Aave team can’t wait to hear what users think of V2! Join the Aave Discord community at any time, follow Aave on Twitter, and join the governance forum to learn about and discuss future protocol updates!
