After a successful launch of the Aave v2 protocol we sat down with Isa K. lead comms to discuss the upgrade and celebrate by giving back to y’all!
Take one step closer to sovereignty every single week, join the DeFi Slate community below:
DeFi Slate Fam:
Gang gang whats going on mi famalie we are super stoked for this post for a few reasons:
Aave was our first ever sponsor and they showed us mad support by hopping on a podcast (shoutout Marc Zeller)
Aave v2 has just launched which is a huge improvement for the DeFi space & all participants
We have never done a giveaway like this before so excited to see how it goes
Maybe a bit too much coffee this morning
So with v2 being a success, we have decided to launch the giveaway and give back to the people who have been with us and Aave since the jump.
Here’s how you participate:
Once you’ve entered, definitely check out the AMA below regarding v2 and the upgraded functionality. Its lit.
We will announce the winners Friday.
May the force be with you.
🙏 Big Ups To Our Great Sponsor Aave: Earn Interest & Leverage Your Assets with Aave, a non-custodial money market protocol leading the #DeFi charge.
🚨Their new roadmap is LIVE with liquidity mining on Beehive 1.0 coming soon🚨Wiretap Wednesday: Going Risk-On using DeFi Tools
Tap In Tuesday: Aave v2 AMA
What are the important updates from AAVE v1 → v2?
Besides the UI glow up, the main features are:
Yield & Collateral trading: Users can trade their deposited assets, across all currencies supported in the Aave Protocol, even when they are being used as collateral. This is an incredibly useful tool for managing your borrow positions and preventing liquidations. Say you’re using ETH as collateral, for example, and the price of ETH drops. You can trade your collateral for a stablecoin so you don’t have to worry about getting liquidated. Additionally, this feature lets you swap to get the best yields on the market.
Tokenization of debt: borrowers receive tokens that represent their debt. This feature enables native Credit Delegation within the protocol and makes it possible for borrowers to manage their debt position from cold wallets.
Native Credit Delegation: Native Credit Delegation allows a depositor to deposit funds in the Protocol and earn interest, and delegate borrowing power (i.e. their credit) to another user. Stani did the first native CD on the Kovan tesnet. This enables the depositor (delegator) to earn extra yield on top of the yield they already earn from the protocol and the borrower (delegatee) to access an uncollateralized loan.
Repayment with collateral: Users can close their loan positions by paying directly with their collateral in just 1 transaction! Before, it would’ve taken at least 4 transactions.
Flash liquidations: Liquidators can utilise Flash Loans to flash borrow the capital from the Aave Protocol itself in order to execute a liquidation. Now liquidators don’t need to have any existing capital to get those liquidation bonuses.
Batch Flash Loans: Flash Loans from V1 were limited to just one currency, but now Flash-borrowers can access basically all the liquidity in the protocol with this ultra powerful Flash Loan. Batch Flash Loans let developers execute a Flash Loan with multiple assets inside the same tx.
Stable & Variable rate borrowing: borrowers can have both stable and variable borrow positions at the same time, with the same underlying asset, from the same wallet.
Gas optimisations: lower the gas cost for protocol transaction fees to up to 50% in some instances! This feature is to help mitigate the network congestion and high gas prices we’ve seen on Ethereum recently.
Were there any unexpected outcomes since testing v2 on Kovan?
The protocol was audited several times and the testing period on Kovan confirmed the resilience of the protocol. Everything has been done to bring the best user experience to Aave Protocol users.
Is the team launching v2 any differently now that governance is decentralised?
Aave V1 is governed by the community governance, so all decisions are voted on. V2 is a completely new version, so the Aave “Genesis Team” will keep control during the first month in case any issues come up. After that, the decision making power will be transferred to the governance.
Also with V2 governance, $AAVE token holders will be able to delegate their voting power. aAAVE holders will also be able to delegate the voting power of their underlying AAVE.
How do you see collateral trading and debt trading will affect the rest of DeFi?
Our vision is to increase the possibilities for DeFi users, and the new features of the Aave Protocol V2 help the whole DeFi ecosystem to be even more attractive and competitive with Centralized finance. It’s also completely compatible with our synergies with other ecosystem actors. For example, there are many features using seamless protocols like Uniswap to operate the swaps. The Aave Protocol vision is to break the ideas of silos, so Aave users will also be users of other protocols at the same time.
Will the release of ETH2 have any impact on the functionality of AAVE?
On the technical side ETH2 phase 0 has no impact on Aave and all Ethereum Dapps. Phase 1 is not expected in the short term and the immediate future of DeFi will be on L2 and sidechains and not on ETH2.
At this point, what does the DeFi ecosystem most critically need to push adoption?
Scalability. DeFi needs to break the bottlenecks of transaction costs due to the limitations of the Ethereum architecture and on a more broad level, DeFi can be the middleware of non-directly financial applications like NFTs, No-loss Lotteries and gaming leveraging on the DeFi layer. In order to do that 2021 will be the year of the expansion and democratisation of Layer 2 on Ethereum.
What capabilities can we anticipate from AAVE in development stages past v2?
Without revealing too much about it, it all boils down to what we call the “Seamless Finance Era”. The Aave Protocol will contribute to breaking down the barriers and the silos in DeFi and increase the abilities of capital for the end-users.
You know what they say…not your keys, not your coins 😉
⚠️ DISCLAIMER: Investing into cryptocurrency and DeFi platforms comes with inherent risk including technical risk, human error, platform failure and more. At certain points throughout this post, we might get commission for promoting certain projects, if this is the case we will always make sure it is clear. We are strictly an educational content platform, nothing we offer is financial advice. We are not professionals or licensed advisors.
Liked this post? Share with a friend 🙂
Subscribe to the DeFi Slate Newsletter & join thousands of other crypto enthusiasts:
🌐Check Us Out On Twitter!
🚀Join the community on Telegram Channel to get our free V.1. yield farming guide!
🎤Subscribe to our YouTube channel!
Last week in review:
Check out some previous interviews: