Dec 04, 2020
One of the members of DeFi, AAVE, launched its new V2 protocol. It is the second protocol release during the year. It will open new opportunities for users.
Founder of AAVE, Stani Kulechov, announced the new version of AAVE on his Medium account. The V1 protocol was announced at the beginning of the year. The protocol had a lot of attention, and it passed the $1 billion market size in 6 months, which was the record for the DeFi. The first protocol had the innovative features of Flash Loans and aTokens. Kulechov mentioned that Flash Loans volume hit the $1 billion milestones this week. Relying on those accomplishments, we can expect some great features from the protocol V2.
V2 protocol provides many new features. Yield and collateral swaps are one of many. People now can trade their collaterals across all available currencies. It is excellent news for the community which has collaterals. If they suspect that the market will go volatile, then they can trade their collaterals to the stablecoins. It is the first time in the DeFi field.
The next feature is flash loans, which were also in V1 protocol. It was the first loan that can be taken out without collateral. Flash loans will continue in the new protocol. Flash loans will receive a new upgrade as “batch” flash loans. Now users can take out a loan with different currencies in one transaction. In the V2 protocol, your debts will be tokenized. Tokens will represent your debt position.
With the new feature, users can pay their loans with their collaterals. Before it was not too hard to do it, you had to do multiple steps. Now it is easy to pay with your loans with just one transaction.
AAVE introduces new gas optimization. In the past, people experienced some high gas prices in the Ethereum platform when the number of transactions increases. With the new optimization, gas prices can be lowered down to 50%.
You can get broad information about the protocol update by just checking out their medium account. With the new features, AAVE can increase its market share and most used lending and borrowing platform. The potential of AAVE being the most used platform is very high.
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