Avalanche is a high throughput smart contract blockchain platform. Validators secure the network through a proof-of-stake consensus protocol. It is said to be fast, low cost, and environmental friendly.
Polygon (Previously Matic Network) is the first well-structured, easy-to-use platform for Ethereum scaling and infrastructure development. Its core component is Polygon SDK, a modular, flexible framework that supports building multiple types of applications.
FANTOM is a new DAG based Smart Contract platform that intends to solve the scalability issues of existing public distributed ledger technologies.
Aave is a decentralized money market protocol where users can lend and borrow cryptocurrency across 20 different assets as collateral. The protocol has a native token called AAVE, which is also a governance token that lets the community decide the direction of the protocol in a collective manner. Lenders can earn interest by providing liquidity to the market, while borrowers can borrow by collateralizing their cryptoassets to take out loans from the liquidity pools.
Aave v3 will be available on seven networks: Polygon, Fantom, Avalanche, Arbitrum, Optimism, Harmony and Ethereum. Users will be able to make swaps crosschain at low costs.
The popular decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. finance platform a place to buy, sell and store cryptocurrency (DeFi), Aave is launching a new version that will offer users asset exchanges between different blockchains.
Lending protocol the set of rules that define interactions on a network, usually involving consensus, transaction validation, and network participation on a blockchain. giant DeFi announced Wednesday the rollout of its third update: ‘V3’, which promises more security, decentralization the handover of control from a central authority to several different custodians. and capital capital is most commonly defined as the large sum of money you would use to invest. efficiency for users. Aave v3 will also be available initially on six networks Blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. with a seventh, the main network a network refers to all nodes in the operation of a blockchain at any given moment in time. of Ethereum a decentralized open-source blockchain with smart contracts functionality. and will be added in the coming weeks.
- Ethereum (coming soon)
V3 loading… 95% and counting ???? pic.twitter.com/xMsZVX7OA2
– Aave (@AaveAave) March 16, 2022
Aave v3 comes with some notable enhancements, the most notable being cross-chain asset flow support the opposite of Resistance, it is a threshold that crypto’s price doesn’t fall below. ( cross-chain cross-chain is a technology that enhances the interconnection between blockchain networks by allowing the exchange of information and value. ). This will make it easier for users of the platform to move their assets between different blockchains. Aave is upgraded to provide “ escalabilidad, cadena cruzada y mitigación de riesgos “founder and CEO Stani Kulechov told Crypto Briefing .
Exchanges cross-chain and at low costs
The new version of the platform promises clearer transaction flows and faster load times. In addition, the protocol will integrate with some of DeFi’s most widely used projects, including Instadapp , Debank , 1Inch , ParaSwap , Zapper , DeFi a movement encouraging alternatives to traditional, centralized forms of financial services. Saver y Zerion .
Among the new features, Aave v3 offers savings on gas a term used on the Ethereum platform that refers to a unit of measuring the computational effort of conducting transactions or smart contracts, or launch DApps in the Ethereum network. It is the “fuel” of the Ethereum network. *see Gas Limit and Gas Price. fees (or transaction fees), improved efficiency for borrowers, and other features designed to limit risk (including risk limits and exposure limits on newly listed assets). One of the new features is the ‘portals’ (‘Portals’) cross-chain, as collected by CoinDesk .
The new function ‘ Portals ‘ allows the cross-chain bridges a blockchain bridge allows the seamless transfer of data or tokens between two different blockchain projects. to accumulate and burn tokens tokens representing deposits in Aave . Bridges will mint the “aTokens” of Aave on one chain and burn them on another, maintaining accounting across chains and allowing users to pursue performance arbitrage arbitrage is the practice of quickly buying and selling the same asset in different markets to take advantage of price differences between the markets. and other strategies, the media outlet explains.
“ You can deposit on [Ethereum’s] main network, but borrow from Polygon and pay on Avalanche, all under the same roof. “ , dijo Kulechov and CoinDesk . He also said he expects that the fluctuation in demand for liquidity how easily a cryptocurrency can be bought and sold without impacting the overall market price. and interest rates could be more “liquidity-intensive”. planned ” a medida que se activa la nueva función.
Currently, Aave is available at Avalanche , Ethereum y Polygon with dozens of assets offering loans and variable interest rates on each chain.
Aave v3 brings many optimizations
In terms of security, the new version comes with a “ isolation mode “The aim of this project is to reduce the risk of tokens newly listed. This option a contract giving the buyer the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price. allows users to limit your exposure to the newest tokens by only being able to borrow specific amounts of money. The founder of Aave he explained:
In terms of risk mitigation, we can actually reduce the risk of new collateral collateral is any asset that a lender accepts as a form of security to ensure that the borrower repays a loan. entering the ecosystem and still list it, but with limited exposure.
As he points out The Block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain. in the DeFi space, the tokens recién listados pueden conllevar riesgos de reingreso en sus códigos de contrato inteligente que pueden abrir la puerta a ataques de préstamos relámpagos (o flash loans ) malicious.
Finally, Kulechov indicated to CoinDesk that the characteristic of Aave v3 that he was most excited about was the new “ high efficiency mode “ . This feature will allow users to take advantage of extremely high loan-to-value ratios, provided they borrow against the same asset they pledge as collateral. In some cases, even up to 98% of total locked value (LTV).
According to the media, that function includes Ethereum (ETH) and ETH derivatives wagered, Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. wrapped (BTC) such as wBTC and renBTC and stable coins.
With more than USD $11 billion in LTV, Aave is currently the second-largest DeFi lending platform, according to DeFi Flame . The protocol is just behindAnchorbased on Earth which has more than $13 billion in LTV. The new updates, including the ability to make swaps between several chains, could help the platform consolidate its position as a leader in the sector.
- Aave officially launches its authorized DeFi platform for institutions
- SushiSwap launches its highly anticipated new MMA on Polygon: Trident
- Avalanche News: Project creates $290 million fund for DeFi / NFT non-fungible tokens (NFTs) are cryptocurrencies that do not possess the property of fungibility. and AVAX token a digital unit designed with utility in mind, providing access and use of a larger crypto economic system. comes to Bitstamp
Article by Hannah Estefania Perez / DiarioBitcoin
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