AAVE launches v3 on Ethereum, Rallies 55% in January

AAVE launches v3 on Ethereum, Rallies 55% in January

Kris Kay
Kris Kay

The staple and 'OG' leading lending protocol in the DeFi world has shipped yet again.

In 2022 AAVE shipped their brand new version 3 across multiple L1 and L2 networks, including Avalanche, Polygon, Optimism, Arbitrum etc...

This new version included cool features such as:

  • "e-mode": (allows borrowers to extract the highest borrowing power out of their collateral)
  • "isolation mode": limits exposure and risks to the protocol from newly listed assets by only permitting borrowing up to a specific debt ceiling;
  • Cross network "portal" and much more!

55% Rally to Ring in 2023

Maybe we bottomed, maybe this is a relief rally...

..or maybe this recent v3 feature brought some reassurance to speculators on how consisteny the AAVE community is at shipping features?

Well that's not all:

AAVE founder, Stani, reassured us that the ghosts are stopping any time soon.

Stani mentioned the upcoming AAVE-related releases, and the one that a lot of people are waiting for is, 'GHO'.

'GHO' will be AAVE's very own stablecoin (pronounced 'go') ..as in 'GHOst', get it?

the TLDR on GHO is that AAVE depositors will be just able to borrow GHO,
(1 GHO = $1) against a variety of collateral of their chosing (i.e ETH, WBTC, and MATIC)

It is similar to minting the DAI stablecoin on MakerDAO, except on Maker you can borrow against 1 collateral asset at a time,

and on AAVE, you will be able to mint GHO against a number of assets acting as collateral AND the cherry on top is: your collateral earns interest in the mean time.

Perhaps we'll save GHO for it's own article, but it is indeed coming VERY soon here in Q1 2023.

Happy HODL'ing!

Disclaimer: Author owns some AAVE, Ethereum and other crypto assets.