Decentralized finance (DeFi) protocol Aave has announced the launch of Aave V3, which represents a significant evolution of the current liquidity pool model, promising to improve cost-effectiveness, strengthen existing security measures, promote further decentralization through the development of DAOs, and improve user experience.

The project’s original token holders, AAVE, are eligible to participate in Aave Improvement Proposals (AIP), a chain governance voting mechanism that allows token holders to propose and vote on network upgrades for implementation under the underlying protocol.

The V3 proposal was published in early November 2021 by team member Emilio. The V3 proposal was put to a vote from November 4 to 11 and was unanimously accepted by 2,911 community members who voted to allocate 342,000 support tokens.

The V3 update brings upgrades such as cross-chain functionality, a social contribution tool, a gas optimization model expected to reduce taxes by 20-25%, and a high efficiency mode, among others.

In addition, a number of decentralized applications (dApps) will be integrated into the V3 platform, including: Instadapp, Debank, 1Inch, Paraswap, Zapper, DeFisaver, Zerion and others.

Previous management decisions made by Aave catalyzed the spread of V3 across a number of blockchain networks including Polygon, Arbitrum, Avalanche, Fantom, Harmony, and Optimism. The team notes that distribution on the Ethereum network will continue.

Cointelegraph contacted an Aave representative to explore in more detail their vision of how the gateway portal could impact the Aave ecosystem, as they stated:

The cross-chain portal will allow users to transfer their liquidity from one network to another at their own discretion. This will allow you to quickly scale each iteration of the protocol in different networks with a capitalization depth.
Related: Aave launches Web3 social networking platform, Lens Protocol

In addition, speaking about how to quantify success in the areas of “improving capital efficiency, security, and improving decentralization,” as stated in the press release, an Aave spokesperson said that “something needs to be done by the community.”

According to analytics provided by DappRadar, Aave is the sixth leading protocol in the Total Closed Value (TVL) ranking, having recorded $11.79B at $125.40 at the time of writing.

Also today, I announced the appointment of Silvergate Capital Corporation (NYSE: SI), Aave Companies General Counsel, Rebecca Rettig, to its Board of Directors.

Alan J. Lin, President and CEO of Silvergate noted that “Rebecca’s extensive knowledge of blockchain and cryptocurrencies makes her a valuable addition to our board of directors” and then stated that “her experience will support us as we continue to provide innovative solutions for the fast-growing crypto industry”.

Source: CoinTelegraph