Best DeFi Aave Protocol Launches v2: Native Ethereum Token Instantly Increases 8%

Leading decentralized finance protocol Aave just rolled out its biggest update: v2 or version 2.0.

This update has been advertised for a long time, as many expect it to start turbo-boosting protocol growth. Through Aave, Ethereum DeFi users can easily lend and borrow the best digital assets such as ETH and stablecoins. The protocol currently has a total block value of $ 1.5 billion according to DeFiPulse, making it the fourth largest DeFi protocol than that metric.

What is Aave v2?

Launched a few minutes ago at the time of this writing, Aave v2 aims to provide solutions to some pain points that users of the first iteration of the protocol had.

According to the founder Stanti Kulechov, Aave v2 allows its users to trade their underlying collateral in a gas efficient manner. When using Aave, a key sore point during the summer and during times of immense volatility has been the extremely high transaction fees, which set an effective price for smaller users.

According to an Aave document obtained by CoinDesk, collateral exchange can help users avoid liquidations:

“The exchange of collateral can be a useful tool to avoid liquidations. If the price of your guarantee starts to go down, for example, you can simply exchange it for a stablecoin so you don’t have to worry about price fluctuations and potential liquidation. “

Another key use case of this update is the ability to delegate credit lines to addresses other than your own or from sub-addresses you may own.

This means you can deposit a $ 1,000 worth of collateral into Aave, then delegate that credit to another address to allow the owner of that address to use it as collateral.

@AaveAave launched v2. 🔥

– Exchange your performance
– Exchange your guarantees
– Close the loan with your guarantee
– Credit delegate

And much more, Aavengers has fun with ❤️👻 https://t.co/OOb8EjD2j9

– stani.eth 👻 v2 mode 👻 (@StaniKulechov) December 3, 2020

The idea here is to create a more complex financial system for the DeFi space.

A key problem that Aave has yet to overcome is the huge amount of over-secured loans in space. But due to the unauthorized and incensurable nature of crypto assets, including Ethereum, it’s unclear whether this issue will be fixed anytime soon.

AAVE is growing on the news. Since the news of Aave v2 fell, the coin has risen 8% from $ 84 to $ 91. Analysts expect the coin to move even higher in the coming weeks as Bitcoin continues to press higher. and while DeFi continues to gain traction.

Yearn.finance is also working on a v2

Another important DeFi protocol currently running on a v2 is Yearn.finance (YFI), the return aggregator and multifaceted DeFi ecosystem.

Yearn’s developers are allegedly working on a version two for its Vaults system, which allows users to deposit cryptocurrencies and easily earn a regular return. This new version will use multiple yield cultivation strategies with a deposit to maximize yields and reduce the attack surface.

This update should also send Yearn.finance and the YFI coin itself to a new level of adoption and general notoriety.

Do you like what you see? Sign up for daily updates.