- DeFi project Aave recently added a number of upgrades to its protocol’s network.
- The team launched the second version of its mainnet less than a year after launching the original one.
- With the new upgrades, a lot has been improved and simplified for the users’ convenience.
It has been less than a year since a popular DeFi project, Aave (AAVE), launched its mainnet. However, the project has already gone through a lot of changes and new development, which is why it just launched its upgraded network, Aave v2.
DeFI project Aave launches mainnet v2
Aave is a decentralized lending protocol, which lets users borrow or lend money, and earn interest while doing it. The launch of its original mainnet took place earlier in 2020, and now, as the year is approaching its end — the project decided to make some major upgrades.
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The launch of the new version of its mainnet immediately impacted the coin’s price, which surged by a total of 15% over the course of a few hours.
Aave is also well-known as one of the most popular projects during this summer’s DeFi explosion. It was one of the few projects to have a market cap exceed $1 billion. At the time of writing, its TVL sits at $1.44 billion.
Aave v2 comes with a number of improvements
Aave’s developers announced the v2 release only yesterday, noting that the network will see several important upgrades. One such upgrade is the improvement of Aave Flash Loans — the industry’s first undercollateralized loan option.
The network will also see an update of its yield and collateral swap, which will allow users to trade the assets they have deposited, even if they are being used as collateral. The team expects that this option might help its users to avoid liquidations.
Next, Aave decided to make repayments significantly simpler. In v1, users who wanted to use their collateral to repay the loan first had to withdraw it, buy the borrowed asset, repay their debt. and finally, unlock the collateral.
Now, the v2 will allow users to simply use collateral to repay their debt.
Other upgrades to the protocol include improved debt tokenization, batch flash loans, flash liquidation, and even native credit delegation.
